Posts Tagged ‘RSI’

In this video, you will learn about how to combine the RSI indicator with candlestick reversal patterns to enter short positions in the forex market. As you can see, this is the 4-hour AUD/USD chart. There are higher highs and higher lows. So, this is an uptrend. You need to add the RSI indicator in your MetaTrader platform. Now, you need to add vertical lines to your chart, to identify the highs. […]

The RSI is a momentum indicator. This indicator is used to measure overbought and oversold conditions in the market. It is used in stocks, forex, and commodities trading. This indicator was first developed by Welles Wilder. When RSI goes below 30, then the market is considered oversold, and it is a signal to buy. When the RSI goes above 70, then the market is considered overbought, and it is a signal to sell. […]

The relative strength index (RSI) is a technical momentum indicator that compares the magnitude of recent gains to recent losses in an attempt to determine overbought and oversold conditions of an asset. It is calculated using the following formula: RSI = 100 — 100 (1+RS*) *Where RS = Average of x days' up closes / Average of x days' down closes. At the bottom of the chart below, the RSI, on a scale of 0–100, indicates that the overbought […]

This video is devoted to the Relative Strength Index indicator in the MetaTrader terminal. To apply this indicator to the chart, press the indicators button on the toolbar, choose oscillators, and Relative Strength Index. Subsequently, the window in which we change the properties of this indicator appears. Here, we can choose the period, method, fixed minimum, and fixed maximum, and change visualization settings. In classic literature, this indicator is described as a price following oscillator. It […]

With this strategy, it is just really an RSI indicator, there is nothing special about it. We just made it clean, so, you can easily see when there is a divergence in price, you will often see the market start to go the other way. But that is not all the time. So, you want to use things like volume. RSI divergence is […]

To eliminate the disadvantages of this oscillator, it is necessary to smooth the volatility, and set strict orders on fluctuations. With this in mind, J. Welles Wilder developed a new oscillator. It is called the Relative Strength Index or simply RSI. We are going to examine its basic features now. It has just one time parameter n. We are interested in the behavior of closing price for the period n. If the closing […]

The Relative Strength Index is a momentum oscillator that measures the speed and change of price movements. An RSI calculation oscillates between 0 and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. Signals can also be generated by looking for divergences, failure swings, and centerline crossovers. RSI can also be used to identify the general trend. A technical RSI compares the magnitude of recent gains […]

Drawing Fibonacci retracement is very subjective and it is useful to combine with other technical analysis tools. Combining Fibs with Polarity change is a great way to use Fibonacci retracement. We have to look for Fib levels which interact with old support and resistance lines. As you can see in the chart price broke the previous highs and started pulling back. As the old resistance becomes new support you […]

Oscillating indicators are defined in one of two ways. They either oscillate around a zero line or oscillate between 0 and 100. Popular examples of both are MACD that moves around zero line and RSI oscillates between 0 and 100. Both can be used to find profitable trades and both have limitations. MACD: Arguably the second most popular indicators used by traders, MACD is easy to understand and can […]

In this video David Frank from AvaTrade discusses the Relative Strength Index indicator. RSI is a technical momentum indicator which compares the magnitude of recent gains to recent losses. This is an attempt to determine what is overbought and oversold. What this means is which trading instruments have been purchased too much. And oversold is the exact opposite. That is what the RSI helps us to do. The Relative […]