Understanding indicators: Part 2 - RSI
Most traders tend to use indicators for a confirmation of a trade. But the indicators are usually lagging and one should use indicators only as a secondary confirmation. While this does not diminish the importance of the indicators, one must use them in appropriate situations. Every indicator has some particular characteristics which a trader can use to make it more effective. We will have a look at the RSI, its characteristics & a very different and unique way to use it effectively.
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