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RSI Simplified
Its one of the leading indicator which measures the strength of any move in price
Its an oscillator which moves between two extremes (0—100)
Reading above 70 indicates overbought while below 30 indicates oversold sentiments
1/n
#StockMarket #Technicals
Its one of the leading indicator which measures the strength of any move in priceIts an oscillator which moves between two extremes (0—100) Reading above 70 indicates overbought while below 30 indicates oversold sentiments1/n
#StockMarket #Technicals
RSI Simplified
How to trade with #RSI
50—70 is as zone where trades buy the #stocks by considering other factors (BO, Divergences)
Below 40 is weakness zone where some traders do selling
40-50 is an indecision zone where most of the traders avoid trading & wait for BO
How to trade with #RSI
50—70 is as zone where trades buy the #stocks by considering other factors (BO, Divergences)Below 40 is weakness zone where some traders do selling40-50 is an indecision zone where most of the traders avoid trading & wait for BO
RSI Simplified
Trading Divergences
There are 2 type of divergences occurs b/w RSI&Price (Bullish & Bearish)
In Bullish Divergence RSI makes HH-HL while price doesn't do it
In Bearish Divergence RDI makes LH-LL while price doesn't do it
3/n
#StockMarket #Technicals
Trading Divergences
There are 2 type of divergences occurs b/w RSI&Price (Bullish & Bearish) In Bullish Divergence RSI makes HH-HL while price doesn't do it In Bearish Divergence RDI makes LH-LL while price doesn't do it3/n
#StockMarket #Technicals
RSI Simplified
Trading Checklist for RSI
Buy on bullish or positive divergences
Sell on Bearish or negative divergences
Wait if divergence is very low in nature
Remember more the divergence better the success rate of trade
4/n
#StockMarket #Technicals
Trading Checklist for RSI
Buy on bullish or positive divergences Sell on Bearish or negative divergences Wait if divergence is very low in nature Remember more the divergence better the success rate of trade4/n
#StockMarket #Technicals
RSI Simplified
Case Study
We can see RSI bearish or negative divergence in the pic
RSI cont. making LL-LH pattern while price is making HH-HL pattern (Selling or Profit Booking zone)
It is often considered as fake move as well in ST charts
End of Thread
Thanks
Case StudyWe can see RSI bearish or negative divergence in the picRSI cont. making LL-LH pattern while price is making HH-HL pattern (Selling or Profit Booking zone) It is often considered as fake move as well in ST chartsEnd of Thread
Thanks
