TA discussion, page-3057

Normally don't use RSI as a trend indicator above 50 in the overbought zone which is what I gather you are doing. Normally I would use it as in scans to pick up retrace oversold areas in uptrends as possible entry points. In any case I prefer the Slow Stochastic as a momentum indicator.

However if you are looking to buy into strength then I can see how you would use it that way but as a trend strength indicator it can be misleading. As with all momentum indicators it will eventually go into oversold once the trend continues and so become meaningless. In that case better to use something like the Directional Movement Index as a trend strength indicator which is what it was designed for.

In reality I don't really use much more than the candlesticks for analysis, maybe couple of moving averages which one can use effectively for trend strength once one becomes familiar with them. The deviation of the price action away from the MA gives a pretty indication of trend strength after getting used to recognising the differences.

When I throw indicators around on the forum it is mostly just for demonstrating different ways of looking at various indicators in practice.