Examples & Explanation

A few examples of the RSI2 setup can be found here .

An explaination:
“you have to avoid taking signals when there is a strong trend.”
This means that momentum trades should be considered only in the direction of the trend when there is a strong trend. This leaves open the question of what defines a strng trend.

“When you think about your trading strategies, you will realize that your primary effort should be towards planning your trades in totality. ”
Now, suddenly, instead of worrying about what the Dow does, or what Operator Mr X is planning, you are thinking about what defines a strong trend. When should you avoid counter trend signals and so on. When you start thinking of the different aspects of trading, you are making a plan that includes all the components of successful trading. Trading is much more than getting a ‘tip’.