RSI Indicator strategy for trading | top indicator strategy | Best RSI settings

 

RSI INDICATOR STRATEGY

The Relative Strength Index (RSI) is a popular momentum oscillator used in technical analysis to identify overbought or oversold conditions in a financial instrument. It oscillates between 0 and 100 and is typically used to generate buy and sell signals. Here's a basic RSI indicator strategy

RSI Basics:

• 1. RSI values above 70 are considered overbought, suggesting that the asset may be due for a pullback or correction.
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• 2. RSI values below 30 are considered oversold, indicating that the asset may be due for a bounce or a rally..

BUY CONDITION

Here, Blue is RSI line and upper line is 70 and below is 30. when RSI line crosses down 30 line and then comes back and crosses above 30 line then its a buy condition you can place your buy order here.

SELL CONDITION

Here, Red is RSI line and upper line is 70 and below is 30. When RSI line crosses up 70 line and then comes down and crosses below 30 line then its a sell condition you can place your sell order here.

IMPORTANT RULES FOR THIS STRATEGY:-

1. It performs well in sideways market.

2. Try to combine 1-2 more indicators with this strategy for low risk.

3. Risk management is important never use your whole money in a single trade.

4. Never forget to put stop loss in every trade to avoid big losses.

5. trade in 5,15,30 minutes of timeframe to get better results.

6. risk reward ratio should be 2.5/1 in every trade.

Use this strategy for Intraday trading in all markets.

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