Before you experiment with using this tool as part of a trading strategy, please review my research on RSI-14 strategies with a qualified financial advisor. Hopefully it goes without saying, but you use this data at your own risk. There will always be individual examples where RSI-14 is not an accurate indicator of imminent trend changes. Review current events and do your own due dilligence on each of your trades. It would be unwise to trade solely on the basis of this data without a complete understanding of the securities and strategies involved.
"The relative strength index (RSI) is a momentum indicator developed by noted technical analyst Welles Wilder, that compares the magnitude of recent gains and losses over a specified time period to measure speed and change of price movements of a security. It is primarily used to attempt to identify overbought or oversold conditions in the trading of an asset...
The RSI provides a relative evaluation of the strength of a security's recent price performance, thus making it a momentum indicator. RSI values range from 0 to 100. The default time frame for comparing up periods to down periods is 14, as in 14 trading days...
Traditional interpretation and usage of the RSI is that RSI values of 70 or above indicate that a security is becoming overbought or overvalued, and therefore may be primed for a trend reversal or corrective pullback in price. On the other side of RSI values, an RSI reading of 30 or below is commonly interpreted as indicating an oversold or undervalued condition that may signal a trend change or corrective price reversal to the upside."
My research on RSI-14 strategies has shown that these securities have the highest return when using this strategy.
These are leveraged commodities ETFs, specifically Gold. These ones in particular are designed to give short-term exposure to long-term volatility, each in a particular direction. If Gold goes up, JNUG goes up even more. If Gold goes down, JDST goes down even more.
I believe the reason these are doing so well right now is that there is a huge amount of anxiety and uncertainty, not just in markets but whole economies on a global scale. The rise of populism and anti-globalism today has caused a huge amount of chaos, and Gold is seen globally as safe. This means that huge amounts of money are constantly flowing in and out of Gold as situations unfold.
These ETFs were designed to take advantage of that movement in and out of Gold. Based on the data I have analyzed and linked to above, I believe this strategy is very effective at finding the right time to buy for just a few hours.
The data show that if this strategy had been employed last year, it would have done up to 400% growth. But I feel the uncertainty and choas in the world is only increasing, and that suggests this strategy will work even better this year.