" Short term traders, and day traders need to know the upside or downside bias in any given day, and an idea of how strong that bias is.

One way to do this is by comparing two different Relative Strength periods of time. For this analysis, we use a RSI setting of 9, and a RSI setting of 30.

Furthermore, for simplicity in reading the results, we "zero base" the RSI reading for our paid subscribers. To zero base a RSI reading, one needs to subtract 50 from the RSI level at each data point. Then, instead of 50 being neutral, 0 is neutral. This makes it very easy to see if the RSI is positive and how positive it is.

So, let's apply this to the New York Stock Exchange (NYA Index). Today's posted chart is a daily chart going back to last December.

Look for two things on today's posted chart ...

1. When the RSI readings are positive or negative (above or below zero).

And,

2. When the Green 9 RSI reading is ABOVE (or below) the Blue 30 RSI reading. Those are times where the daily market strength is "extra strong" or "extra weak".

Thank You

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Furthermore, for simplicity in reading the results, we "zero base" the RSI reading. To zero base a RSI reading, one needs to subtract 50 from the RSI level at each data point. Then, instead of 50 being neutral, 0 is neutral. This makes it very easy to see if the RSI is positive and how positive it is.

I look for two things on today's posted chart ...

1. When the RSI readings are positive or negative (above or below zero).

And,

You made an observation above in this thread on  Thursday, April 22, 2010 11:54:06 AM which may be of use to you.