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I am following very simple trading plan based mainly on RSI and ADX.
Now whenever we wants to initiate trade then firstly we have to decide BIAS for direction.

BIAS based on RSI as follows-
RSI Above 55-Long.
RSI below 45-short.
RSI between 45-55—- neutral.
Continue

Momentum study guides us for exposure in our long or short trade.

Momentum based on RSI is as follows-
RSI— 55-60~mild long(25%),
RSI— 60-65~moderate long(50%)
RSI— 65-70~strong long (75%)
RSI Above 70~ very strong long (100%)

Momentum based on RSI for short trades is as follows-
RSI— 40-45~mild short (25%),
RSI— 35-40~moderate short (50%)
RSI— 30-35~strong short (75%)
RSI below 30~very strong short (100%).
Please note, one need to check RSI at closing of the day for continuation of trade and exposure.

Now finally trend confirmation.... ADX is very simple and effective tool to judge the underlying is trending or not...whenever adx is rising it gives confirmation of trend formation and when adx crosses 25, it suggests strong trend formation.

When adx is rising and bias is on long side then trend is uptrend.
Similarly with rising adx and short bias gives confirmation of downtrend.

RSI is almost perfect indicator.

Ion Ex: RSI made top on 10 June and stock closed at 2178.9.There was a divergence on the chart as RSI kept making LH but price kept up.But in yesterday's correction, price exactly visited the closing price of RSI top and cleared the divergence.

A Tattoo has been posting selective screenshots of my Tweets to this followers to showcase how I do not know how to use RSI.

While he runs his shop showing other people down, here are the basics for the wise:

1) RSI above 70 gets into overbought zone but it's the crossover from

the 60s to the 70s that gives the maximum thrust.

2) Daily RSI gives a good thrust but that can stay short-lived. It's the weekly/monthly RSI crossover into the 70s that provides a more sustained thrust

3) During the weekly crossover, daily RSI might reach astronomical levels

Many a times into higher 80s or early 90s. So in a shorter time frame this daily RSI would try to correct but since the weekly RSI is getting stronger, these dips would be shallow and short-lived and price would try to move higher again.

You would have seen such a behaviour in Wockhardt. Price hit a 20% and then went another 10-12% higher which heated the daily RSI and the price corrected sharply on day 3.

4) But because the weekly RSI was getting a crossover into the 70s, price reversed quickly to hit 10% more.

5) Now when this weekly RSI becomes heated, that is when the price might make a medium term top. Again, if the monthly RSI too gets a crossover into the 70s then the stock can continue to perform well for a few months till the monthly RSI gets heated.