The markets are testing lower following an overbought signal on the RSI indicator, let's see how that has performed historically.
Day - Monday
Opening Gap Direction - Down
Market Status - Days of new highs has led to an overbought signal
Instrument - ES, RTY, NQ, YM
Trading SetUp - Long
Market Trend - Bull
Trade Type - Intraday Entry
Entry - 9:30 am ET (Market Open)
Exit - 4:15 pm ET (Market Close)
Note: Most tests/studies are done going long using Future Indices. This is done for several reasons; so you can easily compare different studies/tests, and because of the high correlation of these Indices to other instruments. Make your comments and ask your questions below.
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