Hammer - IO Reversal ?, page-10

I thought I bring up another view of FMG using the standard RSI setting. Note the corresponding divergence in price and momentum over time. RSI is a powerful tool to give indication of a momentum whether down or up is tapering off BUT is does not tell the user when this is likely to happen.

You will here the phrase "markets can be exuberant a lot longer that a punter be solvent" when betting against a trend. In FMG's case hindsight is much easier to pick those turning points but in practise I think the stop placement is important to give room for survivability. If you are of the mindset of LTBH then no point looking at charts because you already 'know' where the future lies. I personally have an idea but not the conviction to make predictions nor do I want to because it bring up all sorts of confirmation bias.

From TA perspective we have entered a cycle of RSI diverging from price momentum BUT I am not bold enough to call the current low the reversal. The indication is there and it is up to the viewer to see if this is convincing evidence or just market noise.