EPISODE 2 -
RSI - Momentum Indicator
This is a momentum indicator with a separate scale. There’s a single line scaled from 0 to 100 that identifies if market is overbought and oversold. Readings over 70 indicate an overbought market, and readings below 30 indicate an oversold market.
It assists in knowing when to enter the market if the trend is reversing by an uptrend or downtrend.
RSI can also be used to confirm trend formations. If RSI breaks above the 50 level, the market is probably going uptrend and if the line is below 50, the market is probably in a downtrend move.
Summary
When RS is below 30 you can enter the market and maybe your first target will be at the 50RSI waiting to see if it breaks above 50 and keep holding or it will bounce back to 30RSI and keep you waiting. You can decide whether to make those small profits or by entering at 30 and selling at 50 and hold some above 50. If you want to short, You can enter at 70RSI and short at 50RSI if it continues below 50RSI it means market is going downtrend and you can continue with the party.
SEE WHAT HAPPENED BETWEEN 3RD JAN AND 8JAN 2020,
SEE WHAT HAPPENS WHEN RSI DOESN'T BREAK ABOVE 50
iN A Scenario whereby RSI is above 50 and doesn't reach 70 for you to think of shorting, that's where other indicators are needed to tell you if the market will continue upward or reverse down. Maybe selling a bag at 50 RSI and setting a new target with a Stop limit maybe 48 or 49 may help in that case and gamble.
RSI - Momentum Indicator
This is a momentum indicator with a separate scale. There’s a single line scaled from 0 to 100 that identifies if market is overbought and oversold. Readings over 70 indicate an overbought market, and readings below 30 indicate an oversold market.
It assists in knowing when to enter the market if the trend is reversing by an uptrend or downtrend.
RSI can also be used to confirm trend formations. If RSI breaks above the 50 level, the market is probably going uptrend and if the line is below 50, the market is probably in a downtrend move.
Summary
When RS is below 30 you can enter the market and maybe your first target will be at the 50RSI waiting to see if it breaks above 50 and keep holding or it will bounce back to 30RSI and keep you waiting. You can decide whether to make those small profits or by entering at 30 and selling at 50 and hold some above 50. If you want to short, You can enter at 70RSI and short at 50RSI if it continues below 50RSI it means market is going downtrend and you can continue with the party.
SEE WHAT HAPPENED BETWEEN 3RD JAN AND 8JAN 2020,
SEE WHAT HAPPENS WHEN RSI DOESN'T BREAK ABOVE 50
iN A Scenario whereby RSI is above 50 and doesn't reach 70 for you to think of shorting, that's where other indicators are needed to tell you if the market will continue upward or reverse down. Maybe selling a bag at 50 RSI and setting a new target with a Stop limit maybe 48 or 49 may help in that case and gamble.
