Bearish RSI BAMM

The Bearish RSI BAMM begins with a complex reading above 70. Referring to the RSI BAMM illustration in Figure 6.47, the entire process requires several elements to validate this specific scenario. Although the entire illustration might seem a bit overwhelming upon first examination, this represents the ideal RSI BAMM model. I recommend that you thoroughly study this material before employing these strategies in your live trading. Each step will be broken down to illustrate the ideal RSI BAMM model. Obviously, the ideal situation does not occur every time. It is important to remember that the real application of the RSI BAMM principles will require a degree of flexibility.

Figure 6.47.

The ideal model does present all of the critical elements that clearly explain the effectiveness of this strategy. But, it will take a period of study to fully comprehend all aspects of the RSI BAMM approach. In much the same manner that the initial rules of harmonic pattern identification and differentiation may have seemed overwhelming, the RSI BAMM rules—albeit a bit complex upon first study—provide a coherent and comprehensive method for accurately measuring potential areas of divergence. Furthermore, it is essential to maintain the patience to execute only those trades that possess all required elements that validate a trade signal based upon the rules of the RSI BAMM setup. Again, it is important to remember that this illustration re....ideal model