its good to use the rsi with other tools.RSI is a staple in many traders' toolkits. However, like any indicator, it's most effective when used in conjunction with other confirming signals.
Mainly news high impact like NFP, big difference between actual data and forecast could lead the market spike and indicator can't work properly.I use technical indicators to identify market trends, but I always consider other analyses. It's important to understand the strengths and limitations of different indicators and to consider factors like market sentiment and news events when making trading decisions.
I have mostly stuck to the classic overbought and oversold levels with RSI. Focusing to 45 and 55 levels sounds like a smart way too. Do you pair this with any other indicators?Hey Zerologic : Using RSI for overbought and oversold is definitely a tried-and-true method, but if you focus on how RSI behaves around the 55 and 45 levels, you can get even more out of it.
Here’s how I approach it:
I’ve found these levels particularly useful for filtering trades and identifying momentum shifts before extreme conditions set in. They’re not just about confirming trends but also about timing entries and exits more precisely.
- Above 55: This shows bullish momentum picking up without hitting the overbought zone (70+). It’s a great confirmation that buyers are gaining control and there’s strength behind the move.
- Below 45: This signals bearish momentum increasing but avoids the oversold trap (below 30). It tells you sellers are in charge, and the market is leaning downward.
Have you noticed how RSI reacts near these levels in your trades? Curious to hear if it’s something you’ve tried!"
I combine Twin Moving Averages, RSI, and ADX. Trend, momentum, and trend strength.I have mostly stuck to the classic overbought and oversold levels with RSI. Focusing to 45 and 55 levels sounds like a smart way too. Do you pair this with any other indicators?
I have found that divergence requires a bit more patience and content to use the tool effectively, especially in trending markets. Do you combine RSI with any other indicator?I mostly use RSI to see the possibility of overbought and oversold, even though it can be used for divergence trading, I rarely use it.
I'd use RSI to spot overbought & oversold level but not rely on it for divergence. How you find out it worked for you?I mostly use RSI to see the possibility of overbought and oversold, even though it can be used for divergence trading, I rarely use it.
This does not always work according to theory but rather serves as an early warning to increase caution in trading decisions.I'd use RSI to spot overbought & oversold level but not rely on it for divergence. How you find out it worked for you?
So true! How'd you track if things go off track?This does not always work according to theory but rather serves as an early warning to increase caution in trading decisions.
After a decision is made, I don't know whether it will meet expectations or not, but I will pay attention to other factors such as economic data on currencies, other indicators such as Bollinger bands, or candlestick patterns. Maybe you'll teach me another method?So true! How'd you track if things go off track?
I usually rely on mix of both price action and resistance levels. Have you tried combining it with your indicators?After a decision is made, I don't know whether it will meet expectations or not, but I will pay attention to other factors such as economic data on currencies, other indicators such as Bollinger bands, or candlestick patterns. Maybe you'll teach me another method?