Add the RSI Indicator and now you have two good market guides.

The RSI Indicator is often overlooked and really more people need to appreciate how useful this tool can be. The RSI Indicator compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of the market. The market is deemed to be ‘overbought’ once the RSI approaches the 70 level, meaning that it may be getting overvalued and there is a good chance of a pullback. Likewise, if the RSI approaches 30, it is an indication that the market may be getting oversold and therefore likely to become undervalued. See below how to install the RSI on the same chart we installed the two EMAs on in the previous video giving us extra confirmation of the signal to sell.