Recognizing strong momentum

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Recognizing strong momentum with RSI

Chapters

• 00:00 Intro – RSI as an indicator
• 00:35 How RSI Works
• 01:10 RSI Rules & Interpretation
• 02:20 Example gold
• 03:30 Example platinum & silver
• 04:40 Example Copper & Mining
• 06:00 Key points & conclusion

Quickly to:

• Description
• What we cover
• Step-by-step approach
• Key points
• Common pitfalls
• Short FAQ

Description

Making momentum visible with RSI.

De Relative Strength Index (RSI) measures the speed and direction of price changes.
By working with monthly RSI we get clear signals:
no momentum (<60), positive momentum (60–70), or strongly bullish (>70).
Examples with gold, silver and copper show how this approach works in practice.

What we cover

• RSI base: how the indicator measures speed and direction.
• Interpretation: below 30 = weak, above 70 = strong, between 60–70 = positive momentum.
• Monthly approach: filters noise and provides more reliable signals.
• Examples: gold (strong), silver (accumulation), copper (new record, rising momentum).
• Sector link: impact on mining companies and ETFs.

Step-by-step approach

1. Check RSI. Below 60 = no interest, 60–70 = positive, above 70 = strongly bullish.
2. View graphs. Seek confirmation through candles and trends.
3. Analyze examples. Gold (strong), silver (possible breakout), copper (increasing momentum).
4. Extend sector. Look at miners and related ETFs.
5. Make a plan. Set triggers, stops, and targets based on RSI rules.

Key points

• Monthly RSI is powerful: filters noise and improves timing.
• Levels: below 60 weak, 60–70 positive, above 70 strongly bullish.
• Examples: Gold, silver and copper show different stages of momentum.

Common pitfalls

• Boarding too early: RSI still below 60 gives weak signals.
• Separating RSI from price: always confirm with candles and trend.
• No stop-loss: protect yourself in case of a relapse below the previous candlestick bottom.

Short FAQ

Do you need structure? Our
Learn to Invest guide bundles all the basic principles.