8 stages of the Price-RSI rocket

Ascent

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Stage I : RSI rises, Price rises

Stage II : RSI flat, Price rises

Stage III : RSI falls, Price rises

Descent

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Stage IV : RSI falls, Price falls

Stage VI : RSI flat, Price falls

Stage VII : RSI rises, Price falls

Stage VIII : RSI rises, Price rises

(Stage VIII is same as stage I.)

Caution:-

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1. Stage I starts from the deep valleys of oversold RSI.

2. Traders should keep the stages of the rocket in mind to plan their "journey"

3. The rocket can skip stage II &/or III during ascent if rally is weak

4. The rocket can skip stage VI &/or VII during descent if rally is weak

5. During bull runs, stage VI & VII are likely to be absent.

6. During bear runs, stage II & III are likely to be absent.

7. A stage has not ended till the next has started.