In this video, you will look at the RSI trendline strategy. Look at this USD/JPY weekly chart.
This strategy uses the RSI indicator on a weekly chart. As you can see, the trendline is marked. Price initially shows strong buying tendency and then loses momentum. Though the price makes higher high, the RSI makes lower high, indicating divergence.
The trend prevails for few months and then the market breaks the trendline. Also, the RSI falls close to the 50 level. As you can see, the market then makes a big move to the downside. The market comes for a retest to the trendline to confirm resistance. You can enter a short position here with stop-loss above resistance. You can capture a big move to the downside and maximize on profits.
This strategy works much better on a larger timeframe like the weekly chart. The trendline break, RSI divergence, and the RSI falling to the 50 level gives you confluence, giving you a high probable short entry.