Learning RSI - (Relative Strength Index) the unconventional way.

What the heck is RSI 

The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes.

RSI is an oscillatory indicator means it oscillates between 0-100 

How to apply.

• GO TO INDICATORS
• SEARCH RSI
• APPLY

Settings

Go to Settings of RSI and change the following

1. RSI Upper Band - 60
2. RSI Lower Band - 40
3. Turn off all other lines but RSI

leave the rest of the settings unchanged

Let's get familiar with it

And here's the RSI a line going like a mad drunker.

Here are the key observations 

1. The lines never go above 100 nor below 0

2. The region between 40-60 appeared in a yellowish shade that's the same limit we set in settings

what RSI shows is a 14-day average in the range of 0-100

let me tell you if understand how to use RSI from any other source.

Sorry to say forgot all that learning Because I am explaining this differently. it's not conventional but believe me, it works like a charm.

How to get the most out of it

Here, I am not going to share how RSI was used years ago because that is absurd it didn't work now but I will share new approaches to make money and predict the direction of the market or how to get trade @ with your lazy brain, not because of your shitty gut.

the real thing starts here.

HEY, where, pack up your worries and focus here.

let me tell you, any indicator whether RSI or any other never tells where the market price goes. but it gives a possibility that the market can go in a certain direction 

• RSI above 60

Have a look at the above image 

 look at the point where RSI breakout 60 lines toward up. you can see the RSI broke the 40-60 zone from above and then the price goes up and BOOM it's 500 points rally there.

YES, you're going in the right direction. when the RSI is 

above 60 that is like a bullish zone. 

40-60 is sideways 

below 40 is bearish

 

Whenever the RSI goes above 60, the market can go up. also, check the volume at the point where RSI gives a breakout The volume should be higher than previous volumes.

But you should not trade only because of RSI. you have to consider other indicators and use multiple indicators before taking a trade. and never forgot stop-loss.

• RSI 40-60 zone

Basically, this is what I refer to as a NO trading zone. Yes, one can trade in this zone but I am not a massive fan of this Zone. So 40-60 Zone Trading No No Zone

• RSI below 40

If this is the case market is likely to be bearish

In the above image. RSI shows the breakout from 40. whenever RSI gives a breakout from 40 toward down and has a high Volume at that candle. The market can go down from that point 

That's where you have to enter the trade.

• Bullish Divergence

When the price is making new Low's one after other 

And RSI is making High one after another then there is a very high possibility that price will shoot up quickly

• Bearish Divergence

 The opposite of Bullish  Divergence is also true. When the price is making new highs one after another and RSI is making Low one after another then the price will quickly shootdown 

As in Red Arrow in the above image

THE CONCLUSION

1) whenever RSI breakout 60 toward above and volume is high at that point price may go up

2) whenever RSI is between 40-60 TRADING NO NO

3) whenever the RSI breakout 40 toward below volume is high the price may go down from that point

4) RSI making new Highs, Price making new Low Price may go Up now

5) RSI making new Lows, Price making new High's Price may go Down from there

***** 6) These things don't work all the time so do trade with stop loss and target there is always some sort of probability that it will not work, but they do work most of the time.

That's all for this one, Have any Questions, Comments, or Suggestions leave them below otherwise thanks for Reading, and Until Next Time🫡