He uses a proprietary version of Elliott Wave theory and also relies on other technical indicators such as relative strength and sentiment measures.

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On the other hand, it is important to note that incorporating price momentum indicators, such as relative strength, do help improve the performance of otherwise fundamentally-based stock screens.

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By combining two proven indicators, Starc bands and the Relative Strength Index (RSI), traders can gain invaluable confirmation that can help prevent those dreaded, impulsive losing trades.

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Daily momentum indicators, such as the nine-day relative strength index have turned higher from oversold levels, and will help support corrective rally bounce early this week.

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Of course, in very strong bull or bear markets, we must rely on technical indicators that can stay with strongly trending markets, as momentum indicators like the Moving Average Convergence Divergence (MACD) indicator or Relative Strength Index (RSI) will top or bottom out well ahead of prices.

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While the market could continue to rise the indicators that show short-term overbought conditions such as the RSI (Relative Strength Index) and the MACD (Moving Average Convergence Divergence) are both solidly in overbought territory.

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