Hi - I have attached picture.

RSI - Standard momentum indicator can be used for trend line break (TLB's), nice TA patterns - H&S type formation etc , mainly for + /_ divergence and finding oversold and overbought levels. The T3 is just providing a MA, a moving trend line basically (T3 's can be emulated somewhat by taking a EMA say a 8 ema and adding an advancement say a 3 period ie 8 ema (+3)

Why use it in this context ? I am just using it to gauge the duration of the current short term price movement, also checking for any divergence etc , have a look at 10 or 12 examples you will get the idea, also to get TLB's, and get the cross of that level 50 ( blue line ) which for the RSI tends to be the major horizontal TLB - its somewhat equivalent to my favourite indicator - the CCI (and zero line)

Specifically it gets me out of some trades where the indicators are signally an entry but the RSI is indicating that the price movement has almost finished. Need to then wait for next opportunity.

The bottom line is that you can use any momentun indicator within reason - the RSI seems an ok fit for this system but people can choose whatever or not at all.

Hope this helps

Regards

Attached Images

t3_rsi example.gif (47.4 KB, 744 views)