Don't Ignore This Chart!

RSI Breakouts


Momentum indicators like RSI can be used to define periods when there isn't much momentum, such as a consolidation. Applied Materials (AMAT) was largely range bound from mid May to mid July (yellow area). So was RSI. The breakout in the stock corresponded with a range breakout in RSI (green dotted line). Note: This is an educational post featuring a technical analysis technique.

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Arthur Hill
About the author: , CMT, is the Chief Technical Strategist at Focusing predominantly on US equities and ETFs, his systematic approach of identifying trend, finding signals within the trend, and setting key price levels has made him an esteemed market technician. Arthur has written articles for numerous financial publications including Barrons and Stocks & Commodities Magazine. In addition to his Chartered Market Technician (CMT) designation, he holds an MBA from the Cass Business School at City University in London. Learn More
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