Explaining about RSI indicator and how to do successful trades using this indicator
Its my another post about different trading strategies which I have tried myself and wants to make learn other traders so that they can make some money. This is my effort to introduce you people about different trading strategies in very simple English and that is why I need your views in the comment section.
In this post I am here to share a simple trading indicator which is about 70% working and can give you best profits. This indicator is for both long and short term traders, means with any time frame it will work. Also there is no such hard working with strategy with very simple and few steps.
The name of the indicator is RSI (Relative Strength Index) which is set by default. There is no need to change the setting of the RSI indicator because I have tried and is more working with default setting. We all know that this indicator is based on numbers and candle movements.
In the bottom of the candle chart this RSI indicator will appear which is just the shape of the moving candle graph. There are number from 0 to 100 which gives you indication of buying and selling. This is the only indicator which is much working for good trade calls.
CAVNA
It will more work with the combination of Bollinger Bands when combined the both indicators for the better signal. But for the time being I will not discuss about how to combine these two indicators because it be little bit confusing for you guys to understand.
The strategy is very simple which shows you the overbought and oversold positions. I will prefer you people to go for the longer time frames that is 1H, 4H and 1D which is proven to be more accurate. In 1H time frame you open the trade coin which you want and see the RSI numbers.
If RSI is at 30 it means its oversold position and you can start with layers. Your first layer will be at RSI30 and if goes down keep on investing and wait for the upper side move. If the RSI reaches the 50 plus its time to sell your layers but not all in once.
Keep on buying at RSI30 and Keep on selling at RSI50 and above. You are done with this indicator which is just as simple as it looks. If you were not familiar with this indicator and its working then you can go and give a try.
THANK YOU!