An alternative would be to use ADX (average directional index) or ATR (average true range), moving averages, draw trend lines and read candlesticks. For years, I used to use RSI, MACD and momentum, but in the end they are all oscillators (RSI, DMA oscillator, rate of change, momentum,stochastics, MACD, etc.), which are to be used specifically for sideways markets, and NOT for trending markets. Their value is in warning of divergences.
Mark Etzkorn wrote a very good book on all the oscillators listed above amazon.com
So the trick is to first decipher if something is trending or in a trading range. If it is trending, you want to buy every dip until it won't go up anymore and if it's in a trading range, you can sell the high end and buy the low end until it breaks out.
In the end, only candlesticks provide "real time" insight into the battle of the buyers and sellers, and used in conjunction with lines and perhaps select patterns such as bull/bear flags, Linda Raschke's Holy Grail and Trader Vic's 1-2-3, it works for me.
I wrote a couple of articles located at intelligentspeculator.com
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