Yes, to get succeed in the currency market we must have to used the better indicators and features lying in our trading platform. We have to understand the numerous indicators like RSI, CCI and other most useful indicators like pivot point where we can buy/sell in a particular currency pair with having the knowledge of support and resistance price. On the other hand we have to used the volumes and Bollinger bands to know that in a particular time period how much a currency pair fluctuate up or down and what our action have to be.
I will share with you the basics about Relative Strength Indicator (Index).
The Relative Strength Index (RSI), was developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of price movements.
This momentum indicator measures how well the currency is continuing the trend.
The tool displays as an oscillator between zero and 100 and the classic RSI uses 9 periods on daily chart,
When the RSI rises above 70% the currency is said to be "overbought".
When the RSI drops below 30% the currency is said to be "oversold".
Since Momentum typically turns ahead of price, the "tops" and "bottoms" on the RSI often gives advanced warning of strengthening or deterioration of overall technical situation.
I think RSI is very useful in pointing out "overbought and " oversold" price levels.
This is an example :
verey interesting thread about RSI, thank you for sharing these informations, the RSI is one of the best standard indicator in the mt4 plateform, it's wise for traders to include it in their strategies to benefict from the market, the only issue in using the RSI indicator are its setting, the overbought and oversold areas detected by the indicator are very important for traders to take the right decision in their process.
To win in Forex trade , trader must know the market trend because price always moves on trend . If trader know the trend then trader can easily make profit following the trend . RSI is best indicator to detect the market trend , so using this wonderful indicator , trader can earn money from Forex . We are usually using RSI indicator for every trade and earn money from Forex .
when we trade FOREX with the help of the RSI indicator, what we have to look at is the value that must be installed is worth 14, after that we must be able to analyze each movement to be able to immediately observe when the trend will run according to the direction of the RSI indicator we are using. RSI indicator is very easy to understand so we must be careful in its use.
RSI is a oscillator indicator. We know that RSI meaning is relative strength indicator. It is a good and common indicator what we get our meta trader platform atomically. We know that it shows 0-100. Normally a trader go long when price touch 30 point that means market situation is oversold and go short position when price touch 70 level. But only this method we can not get profit always. If we study more about this indicator then we can get more knowledge about this indicator what can help us more. Actually it gives us good knowledge about market strengthening. So dear all fellows lets we go for study RSI more.
Thank you for posting the details of RSI indicator. From what I know, its one of the main oscillators but I don't want to base my trading decisions solely on it. Its a good early indicator of over bought and over sold conditions but if its a trending market, it will repeatedly give you false signals because its designed as a momentum indicator. If you solely base your trades on RSI and buy every time its over sold in a down trend, it will kill your account.
I think the best way is to combine it with trend indicators and then trade based on a combination of these. That way, there will be a lower chance of jumping into every false signal.
Yes my dear I am agree with your ideas about the RSI
Related strength indicator is the much helpful especially for the newbies It's a very easy to understand for everyone new commercial also can understand easily when the Rs indicator is above the 70% its mean that where is over but and now it will come down Rs indicator is showing heart touching to x** below its mean the bear is over sold and it will come back to upward everyone can take guidance easily from this indicator I also used the same.
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