How to Use RSI (Relative Strength Index)

Forex RSI MA Trading Strategy: Sell Parameters. Forex RSI MA Trading Strategy Sell Parameters. The currency pair should be trending lower on your time frame. Market should be falling from recent resistance level. A red arrow should appear in Forex RSI .

Grace Ambassador on March 22, at 6: First, remember that this should be used with the daily charts to find the best opportunities. As kid we would lie on the grass staring at the clouds, playing a game to see what object a cloud would form, to one the cloudformation would look like a house, to the other an old man, to the next a lion or a mountain. An error occurred submitting your form.

What is RSI?

This forex trading indicator is a modified form of a classic RSI indicator. It has been modified to make its use easier and effective. When the RSI is overbought it turns orange and when the RSI is oversold it turns blue.

You only have to set lot size and put it on auto trade. This way, it can enter the trade and then send you an alert of trade entry, and you can then look at it and set your stop loss, trailing stop and take profit levels. Alternatively you can indicate take profit and stop loss levels in terms of percentage or pips as well as the lot size lot. This will really be cool. In this way we are able to begin the analysis and wait for proper entry in advance. The most important feature for me would be to get consistent results under all market conditions, i.

Have used RSI to verify what price action is telling me, but not with 50 period low or high. Fakeouts are a big problem. What I look forward to seeing on an indicator is one that would be able to help me avoid chop, Most indicators are able to get one into or out of trade but are just dumb when it come to market chop. So my ideal indicator would be able to give me warning of the beginnings of a chop. I personally enjoy Simple graphical type indicators like arrows and bars changing colors to tell me which way to take my next trade.

I am grateful for your Trading strategy guides RSI divergence strategy. It is a no holy grail but coupled with a sensible money management and understanding of price action, it definitely indicates the picks and troughs of the rhythm of the market. My advise is, even when there is a confirmed divergence between RSI and price, buy signals in an uptrend and sell in a downtrend.

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This is your last chance to enroll in our 3-Part Mastery Course, enrollment closes in just a few hours. Click below before enrollment is closed: Your email address will not be published. RSI is one of the most used trend indicators you will find online but no one else shares how to trade it with step by step instructions like you will find here.

This can also be used with your forex trading strategies if that is the market of your choice. The actual meaning of RSI Is relative strength index, and this will show you an overbought signal. This will also show you when the price is in oversold territory. I like to use it for the RSI overbought position because that has increased the win rate while using this indicator. Before you start trading using our entry signal, there are a few key things we need to share with you to help you improve your trade.

Also, read our winning news trading strategy. First, remember that this should be used with the daily charts to find the best opportunities. Our Strategy should be used with multiple time frames to dial in your entries to make them more accurate.

Second, it is essential to use the RSI signal to find the price breaking critical levels for the best possible entries. If you combine this indicator with pivot points and a good candlestick pattern, then you will be hitting home runs in your trading on a regular basis.

You will be shown many images in this article so that you can learn how to find a sell signal or buy signals and use the RSI line also known as the RSI level to maximize your effectiveness while using this trading method. This article could also be used as a beginners guide to for everything related to the relative strength index RSI because we took a great deal of time creating this content.

TradingGuides on March 20, at 9: What unique feature do you want to see most in a Trading Indicator? In my point of view the most important feature of the indicator is to predict with high percentage of accuracy of the reversal point or zone either over bought or over sold Reply. TradingGuides on March 20, at For sure, reversals are a great way to trade the market!

Richard Chan on March 20, at 9: TradingGuides on March 21, at 3: Michael Metz on March 20, at Juan Efrain Rios on March 21, at 3: Randy B Dillon on March 21, at 3: Olebile Lebz on March 21, at 7: Kevin Strydom on March 21, at Answer for the competition. TradingGuides on March 22, at 6: Great, that would be a nice feature in an indicator. Thanks for the comment!

Oteng Tlhotlhologolo on March 21, at TradingGuides on March 21, at 2: James Abbott on March 23, at 4: I think that I might like this, after I realize how it works initiate a trade Reply. Iddrisu Alhaji Limann on March 26, at Peter Kim Thomassen on March 21, at 7: Vanessa Lynn Mitchell on March 21, at 9: Thomas Osborne on March 21, at Graham Wills on March 22, at TradingGuides on March 22, at 1: Sam Tranter on March 22, at 1: TradingGuides on March 22, at 3: Great to hear Sam!

TradingGuides on March 27, at 4: Ray Zerafa on March 22, at 2: Grace Ambassador on March 22, at 6: Thanks for your response! Mathew Hay on March 22, at 9: TradingGuides on March 23, at 1: We like seeing entries triggered on either the 30 minute time frame or the hour time chart.

Mark Cathie on March 23, at 1: An interesting strategy thanks guys that I will try this evening. Freddie on March 23, at 1: We think its very powerful from our experience testing this indicator! John on March 23, at 1: Sinar Bulan Purnama on March 23, at 2: William Mitchell on March 23, at 4: John Freeman on March 23, at 5: Looks like a winner Reply.

TradingGuides on March 24, at 8: We hope you will like it! Phin on March 23, at 5: Any indicator showing me a definite reversal Reply. Anthony McKissock on March 23, at 5: Dennis Floyd Gardner Sr on March 23, at 6: Jasper Sterling on March 23, at 6: Benjamin Trudelle on March 23, at 7: TradingGuides on March 24, at 6: David Ason on March 23, at Rachid B on March 23, at John on March 24, at 6: John what type of skype group do you run?

John on March 25, at 2: We can send you a paypal link directly, John. Anthony on March 25, at Looking forward to a great indicator Reply. Jesse on March 25, at 9: If you click and drag on the vertical scale on the right you should be able to find the TP.

I think you have a great informative site, so keep up the good work but the proof is always in the pudding Reply.

Abdelnaser Ahmedelhady on March 26, at Hi thanks for all your great strategies…….. Tien Seng T on March 26, at Graham Brooks on March 26, at Best Regards Graham Reply. Nasi Lemak on March 26, at For RSI, i rely on this setup: Momentum Indicator entry and exit point It seem this system have both of it. A good, precise, sharp and user friendly trading system. Congratulation to the developer. Audy W on March 26, at Interesting, adding this to my arsenal would definitely help my trades.

Tony H on March 26, at Thank you, Tony Reply. David Maxwell on March 26, at Heriberto Montalvo on March 26, at Aaron Whitehead on March 26, at Peter O'Brien on March 26, at Sutan Morgan on March 26, at 1: Gerrie Terblanche on March 26, at 4: Michael Cushman on March 26, at 4: David Ason on March 26, at 4: Francis Connell on March 26, at 5: Rodney Lim on March 26, at 9: Mareshet on March 27, at 3: George on March 27, at 7: TradingGuides on March 27, at 2: Rahman Wealth-Zolution on March 27, at 9: We look forward to helping you Reply.

Nathan Smith on March 27, at 3: Thanks for sharing great strategies. Will be trying this soon. Fabrizio Ghiglione on April 8, at 9: About indicator is there a pop-up alert when signal triggered? Fabrizio Ghiglione on April 9, at 7: About indicator is there a popup alert when candle change color? Fabrizio Ghiglione on May 11, at 5: Clay Herbort on September 17, at Good money management make good profits and thanx for the great presentation Reply.

TradingGuides on September 17, at Hi Friend,, We want to share with you some important information about Trading Strategy Guides as we move forward to our goal to help 1,, Traders find a strategy that suites them best.

TradingGuides on September 17, at 3: The EFC is now available to every trader on tradingview platform! This version is packed with many NEW features like: Welles Wilder to measure the speed and change of price movements. RSI oscillates and is bound between zero and There are many different uses for RSI and by far the most popular is trading overbought and oversold crossovers. To help become better acquainted with the RSI indicator and the different settings, we will review three uncommon tips for trading with RSI.

When traders first learn about RSI and other oscillators, they tend to gravitate to overbought and oversold values. While these are intuitive points to enter in the market on retracements, this can be counterproductive in strong trending environments. RSI is considered a momentum oscillator, and this means extended trends can keep RSI overbought or oversold for long periods of time. Even though RSI dropped below a reading of 30 price continued to decline as much as pips.

This could have spelled trouble for traders looking to buy on a RSI crossover from over sold values. Instead consider the alternative and look to sell the market when RSI is oversold in a downtrend, and buying when RSI is overbought in an uptrend. All oscillators have a center line and more often than not, they become a forgotten backdrop compared to the indicator itself.

RSI is no different , with a center line found in the middle of the range at a reading of Technical forex traders use the center line to show shifts in the trend. If RSI is above 50, momentum is considered up and traders can look for opportunities to buy the market. A drop below 50 would indicate the development of a new bearish market trend.

Notice that when price pushed upward, RSI remained above Even at times, the center line acted as indicator support as RSI failed to break below this value in the middle of April prior to the creation of a nother high. However, as momentum shifted, RSI dropped below 50 indicating a bearish reversal. Knowing this, traders could conclude any existing long positions, or look for order entries with prices new direction. RSI like many other oscillators is defaulted to a 14 period setting.

This means the indicator looks back 14 bars on whatever graph you may be viewing, to create its reading. Even though 14 is the defaulted setting that may not make it the best setting for your trading.

Normally short - term traders use a smaller period, such as a nine period RSI, to replicate shorter term movements in the market. L onger - term traders may opt for a higher period, such as a 25 period RSI , for another indicator line. In our final comparison, you can see in the graph below a nine period RSI line side by side with a 25 period RSI line.

While there may not seem like much difference at first glance, pay close attention to the center line along with crossovers of the 70 and 30 values. As the name implies, RSI is simply measuring relative strength of the underlying market. When using RSI to identify reversals it is important to incorporate other tools like candlestick analysis or trend line analysis.

For example, if you find are reading a reversal candlestick near a trend line while RSI is diverging, then you have a trading signal being generated.

Since RSI measures the relative strength of the underlying market, it is a technical tool that can be applied to nearly any market. However, it is commonly applied to the more liquid and larger markets like forex, stocks, and commodities.

Follow our three steps to buying the dip or selling the rally to bring more an edge to your strategy. Interested in learning more about f orex trading and strategy development?