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To me, this indicator is most useful at the 50% mark. When the JSE's RSI drops below 50%, it is a pretty good indicator that the bears are partially or fully in control and that there are more buyers than sellers. For me, it is a sign to stay out of the market and wait. Above 50%, and its all systems go - my entry signals have a statistically better chance of performing under these conditions. Just a thought
Skaap, I like the thinking, but do you use it more long term or short term. I looked at a few recent profitable trades and loosing trades I had and the "fit" just did not quite intergrate into the trades. My trades are however over a few days rather than weeks/months. For investments I guess there is a good "fit" into a system, showing a good buy/add option...
I don't use it for signals, i just use it as a litmus test for buying, holding or shorting. Generaly, I want the TOPI to be above 50% RSI before getting into stocks