Hello Rob, Thanks for your feedback and I note that your thought...

Hello Rob,

Thanks for your feedback and I note that your thought also looks feasible. I had not seen your comments on T (Twitter?). I have never used Twitter, is it hard to use? Is you twitter nic the same as HC?

RSI is a simple indicator that makes sense to me. RSI does not work on all stocks/charts, but I have noticed that it seems to work OK on the AUD/USD chart.

My belief that price will go higher than the last high is based entirely upon the RSI channels and turning points of the daily RSI, in summary:
1. A new upward channel has formed and has not breached (yet). If the channel breaches then I suspect a scenario similiar to the one that you posted playing out.
2. The RSI is above the 50% level and moving upward. The 50% level may also be re-tested and if it breaches it is not a good sign.
3. The last lower swing on the RSI was higher than the lower swing before it (both on the major and minor swings). Even a very small change either way can make a big difference.

Swings the same height indicate a possible change in trend, but not always. I interpret swings of the RSI in much the same way as you interpret swing charts. Compare major and minor swings indepent of each other.

I don't know what it going happen but I just thought that I would put my logic on the thread in case it helps someone.

Regards

Jim