RSI Divergences

On Grennhill. If you look at the RSI you will see the wave formations quite clearly as the RSI follows the characteristics of the waves and this, in turn, will help with your understanding of EWT. Also, if you use trend lines within the RSI the formation become even clearer. In fact, without using the RSI, labeling wave formations can become very confusing. Hope this helps.

This is a really good thread, some great comments and opinions.

It would seem that there are different opinions on requirements for systems based on Elliots.

Wouldn't work if we all did the same thing..

RSI used correctly, like Jackozy has shown many times, is very useful.

hey i like waves so here my two penneth worth....

Third waves can have the follow relationships to wave one: 0.618, 1.0, 1.618 and 2.618.

Fifth waves can have a relationship to wave three, or wave one, or the combination of waves one through three.

imo it dont have to be 1.618

Regards,

WS

Just to clarify. At no time did I say you cannot have an extended wave 5. You most certainly can but, there will still be a divergence on the RSI between waves 3 and 5. It may be in a lesser time-frame, but it will be there.
I disagree with regard to the minimum requirement for a wave 3: if it doesn't make at least 1.618 of wave 1 it is an ABC and not a wave 3. Anyone who claims otherwise is trying to make their labels fit their count.
So, let's agree to differ for the time being but, I'm confident you will come to appreciate the validity of these statements in due course
Sorry if I came across as presumptuous: it certainly wasn't intended that way

Jackozy,

"In fact, using RSI bullish and bearish divergences has been a key part of my strategy for years. I also look for positive and negative divergence too so actually, I'm fairly familiar with RSI as an indicator..."

What is the difference between bullish divergence and positive divergence? Also what is the difference between bearish divergence and negative divergence?

I feel that EWT is too difficult for me, but interested in RSI, which I may can manage of using. If you have time ... Always appreciated your help.

Hi diver
The part about the 123 low break would not work with regards to Elliott's as a123 would have come way earlier than on a wave 3.
The 123 low would have happened onThe wave 1 itself . It would be the first higher high. I use it for early entry.