Have you ever wondered what makes a Forex trading signal a success? Obviously if it makes pips, there is very little if no drawdown, it happens often and you can count on it to be successful much more than it fails. Wouldn’t that be the definition of a successful forex signal?
I'd like to give you some information that took me nearly three years to find and I stumbled on it while reading a book by Constance Brown a well known trading author. In her book she mentioned that she knew Andrew Cardwell THE expert on RSI, the Relative Strength Index. She said he could discuss the nuances of RSI for hours. This was enough to get me interested.
Now almost 3 years later I've discovered mounds of information on RSI that isn't available in any books I know of. Is nowhere on the Internet other than in my eBook, my website and the articles that I've written for EzineArticles. Here is a little of what I know.
Reversals are little known
Reversals are trading signals discovered by Cardwell as a student of Welles Wilder the man that created the RSI. Welles Wilder moved on to other things but Cardwell stuck with RSI and in doing so discovered reversals.
Reversals aren't divergences
Many people associate trading RSI with divergences. But Divergences are signals on RSI that indicate a trend is slowing and will retrace. Reversals are momentum signals that do something much more productive.
Reversals mean trend continuation
Reversals are trading signals on RSI that mean price is ready to…