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Sunday, August 23, 2009

RSI(7) D,W,M for Selected Gold & Silver Stocks


The above chart is the what I call the sector "leader", when it moves the entire sector moves in tandem. I think we will breakout above the triangle soon although but no promises, as usual. This triangle is quite large and therefore the breakout should be proportional if I'm not mistaken.

I will be posting the RSI chart below from time to time. It is a tool I have found useful to consider when I get into and out of gold and silver mining positions. I consider buying PMs (precious metals) only when the the Daily RSI(7) indicator is currently below 30 and crosses above. Likewise, I sell when Daily RSI(7) is above 70 and crosses below 70 (that does not mean I go short). I usually confirm this signal with a MACD confirmation.

If I want to be less risky with a particular stock, I require RSI(7) Weekly to already be under 30 as well for a buy. The least risky entry would be when both RSI(7) Weekly and Monthly are below 30 and the Daily RSI(7) is crossing from below 30 to above it.

This particular market is very bullish and I have selected my buy point entry at a higher RSI(7) value of 40 at times for very specific stocks that show a bounce off the 40 level repeatedly. Some of these stocks don't go below 30! They are simply that bullish. My back test results show a 33% increase in profits by doing so. Take a look...

Here we use RSI(70) Buy trigger at 30:


Here we use RSI(70) Buy trigger at 40:


Using the following setup in Strategydesk Setup:


Currently we are here as far as RSI(7):

Ticker AscendingLast RSI7d RSI7w RSI7m Zone (estimate)
ABX *
34.6758.253.5450.86
AEM *
57.2258.7855.9354.69
AU *
37.5356.4552.6157.54
AUY *
9.0250.6146.4148.24
BAA *
1.9940.7852.4737.8
CDE *
14.8253.6157.4648.71
EXK *
1.9956.2858.851.57
GDX *
39.3054.7153.4654.13
GFI *
12.2054.8555.4555.44
GG *
35.8751.4651.6455.27
GLD *
93.6559.0959.2658.66
57.5842.4841.8656.34
HL *
3.0751.1653.9743.31
KGC *
19.3153.5953.8455.81
NEM *
40.8455.0146.6848.71
NG *
3.6645.3842.8642.32
NGD *
3.4960.9976.5653.59
NGD *
3.4960.9976.5653.59
19.5251.8950.9147.79
SLV *
13.9249.1552.4653.63
SLW *
9.9160.2661.8255.67
18.2449.3244.3445.93
UXG *
2.9252.9766.3964.18


source: http://rsi.caracommunity.com
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