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Using RSI To Profit In Swing Trading: $RDFN

In this market, stocks seem to go up and up. Barely a pull back as valuations expand exponentially. So how can a swing trader find a stock to short? The answer is in using RSI to profit. (Relative Strength Index). During this crazy market time, I have found that RSI’s reaching north of 85 trigger a sell over 90% of the time within 3 days. The first example is U.S. Steel (X). Just last week it hit an RSI above 85. Within a day, it sold hard back to the $17 range from $20.

Another example is QuantumScape (QS) which has had an insane run in the last few months. Twice in the last few weeks the RSI topped 85 (once even hitting 90), both times it fell back sharply. Any short taken above an RSI of 85 would have made money. Using RSI to profit gave an easy short trade here.

The current play is Redfin (RDFN). The RSI hit 89 today with the stock touching an all-time high of $78.76. Based on this metric, look for the stock to fall below $70 within days. Using RSI to profit gave an easy short trade here as well.

Using RSI to profit in this way during this type of market is great!

Members of Gareth’s Verified Investing Alerts have closed out 195 swing trades already in 2020 for a net gain of 1,771.05%. Join now and get the exact entry/exit price alerts, stops and targets…LIVE. Get The Action NOW by Clicking HERE