Chart of the Day - Friday, October 16th, 2020
October 16, 2020
Today’s Chart of the Day was shared on Twitter by Rolando Santos (@TKPTrader). It's a daily candlestick chart of the Nasdaq 100 ETF, $QQQ, over the past year. Rolando offers us a unique way of visualizing momentum. The color of the candlesticks correspond with the current RSI reading. When the candles are white, like they are right now, it means momentum is in a bullish range (RSI above 50). On the other hand, Red candles mean momentum is in a bearish range (RSI below 50). Imagine if you were only long when RSI was in a bullish range above 50, and sold once it fell below. You would've been in the market during the strongest periods and out of the market during the weakest periods.