Your RSI is telling you where to set your take profit.
*****While i was typing this up and the video was ALREADY uploaded. the trade went through perfectly***
As you can see from the linked chart image, the highest candle closed exactly where I said the #RSI formula told me the move would end.
See the time of May 19th at 8:35am. Notice where the candle closed.
I calculated this point from an RSI signal appearing May 19th at 6:35am (2 hours prior with price action still happening BELOW the 200ma) just before it broke a trend line.
www.tradingview.com/x/8J2L9PFz/
Welcome back to Coffee Shop crypto everybody. I just wanted to drop a quick little video about the #RSI formula that tells you where you can set your take profit.
Im going to be honest with you. This is going to be a VERY confusing formula to follow at first but once you realize the pattern in the numbers, this is going to come to you like a second language. Watch the video and look at the formula breakdown below.
****MAKE SURE TO ASK ME QUESTIONS BELOW****
I know it will be confusing but if you dont ask the questions, you wont know where you're missing it. Honestly, its SO simple, its too simple, and this is why most of you really smart guys are going to be like "HUH?! WTF Is he talking about here?!"
There's a formula I've developed and tested for the past few months, which you can use and seems to work over and over and over again, that when you read your #RSI above the 200-day moving average or below the 200-day moving average, your #RSI is basically telling you where exactly to set your risk reward. You can do the calculation in your head, or even just set a list of 4 numbers from this formula on a piece of paper and leave it next to your screen, and use them to set your trade.
This formula cooinsides greatly with #Fibonacci retracement lines but you dont need to set a FIB to use them. All you need to know is:
A) Where is entry candle
B)Am i uptrend of downtrend
This will equate to what part of the formula you use.
Firstly you need to know what the RSI was at the close of the candle PREVIOUS to your entry candle.
Let me say that again.
To find the RSI for this formula, you need to know the RSI of the candle, previous to the entry candle.
If you realize you are entering a trade late and want to calculate weather you have time to still get in, you can use this formula against the candle that you missed, to see how far the move will go. And youll be able to catch some pips before the move is over.
The Formula:
This is an example of when you are Above the 200MA
RSI = 50-59 / 1:3 (this is a normal safe bet but it doesn't get you the full move)
Use the formula for example. If your RSI = 51.55. Remove the last digit (5)
Move the decimal one space to the left. Now you have 5.15
Your Risk reward should be 1 : 3.15
Remember that an RSI of 50 ~ 59 is a 1 : 3 Ratio. This formula simply allows you to add the rest of the move to the end of the 3.
RSI = 60-69 / 1:4 (this is a normal safe bet but it doesn't get you the full move)
Use the formula for example. If your RSI = 61.55. Remove the last digit (5)
Move the decimal one space to the left. Now you have 6.15.
Your Risk reward should be 1 : 4.15
Remember that an RSI of 60-69 is a 1 : 4 Ratio. THis formula simply allows you to add the rest of the move to the end of the 4
RSI = 70-79 / 1:8 (this is a normal safe bet but it doesn't get you the full move)
Use the formula for example. If your RSI = 71.55. Remove the last digit (5)
Move the decimal one space to the left. Now you have 7.15.
Your Risk reward should be 1 : 8.15
Remember that an RSI of 70-79 is a 1 : 8 Ratio. This formula simply allows you to add the rest of the move to the end.
RSI = 80-89 / 1:10 (this is a normal safe bet but it doesn't get you the full move)
Or use the formula for example. If your RSI = 81.55. Remove the last digit (5)
Move the decimal one space to the left. Now you have 8.15.
Your Risk reward should be 1 : 10.15
Remember that an RSI of 80-89 is a 1 : 10 Ratio. This formula simply allows you to add the rest of the move to the end
RULES:
Your EMAs must all be lined up in a BULLISH format.
DO NOT Trade between the bands.
This best works against a 200ma below and a 50ma above.
RSI must be set at 14
I have only tested this against USD pairs and Crypto pairs.
*****If you want to use this on a #Bearish market****
You only need to subtract (1) from the formula.
Bullish formula:
RSI 50 = 1 : 3 (add the first 2 numbers after the decimal to this ration and you've got the move)
RSI 60 = 1 : 4
RSI 70 = 1 : 8
RSI 80 = 1 : 10
Bearish formula:
RSI -50 = 1 : 2
RSI -60 = 1 : 3
RSI -70 = 1 : 7
RSI -80 = 1 : 9
As you can see from the linked chart image, the highest candle closed exactly where I said the #RSI formula told me the move would end.
See the time of May 19th at 8:35am. Notice where the candle closed.
I calculated this point from an RSI signal appearing May 19th at 6:35am (2 hours prior with price action still happening BELOW the 200ma) just before it broke a trend line.
www.tradingview.com/x/8J2L9PFz/
Welcome back to Coffee Shop crypto everybody. I just wanted to drop a quick little video about the #RSI formula that tells you where you can set your take profit.
Im going to be honest with you. This is going to be a VERY confusing formula to follow at first but once you realize the pattern in the numbers, this is going to come to you like a second language. Watch the video and look at the formula breakdown below.
****MAKE SURE TO ASK ME QUESTIONS BELOW****
I know it will be confusing but if you dont ask the questions, you wont know where you're missing it. Honestly, its SO simple, its too simple, and this is why most of you really smart guys are going to be like "HUH?! WTF Is he talking about here?!"
There's a formula I've developed and tested for the past few months, which you can use and seems to work over and over and over again, that when you read your #RSI above the 200-day moving average or below the 200-day moving average, your #RSI is basically telling you where exactly to set your risk reward. You can do the calculation in your head, or even just set a list of 4 numbers from this formula on a piece of paper and leave it next to your screen, and use them to set your trade.
This formula cooinsides greatly with #Fibonacci retracement lines but you dont need to set a FIB to use them. All you need to know is:
A) Where is entry candle
B)Am i uptrend of downtrend
This will equate to what part of the formula you use.
Firstly you need to know what the RSI was at the close of the candle PREVIOUS to your entry candle.
Let me say that again.
To find the RSI for this formula, you need to know the RSI of the candle, previous to the entry candle.
If you realize you are entering a trade late and want to calculate weather you have time to still get in, you can use this formula against the candle that you missed, to see how far the move will go. And youll be able to catch some pips before the move is over.
The Formula:
This is an example of when you are Above the 200MA
RSI = 50-59 / 1:3 (this is a normal safe bet but it doesn't get you the full move)
Use the formula for example. If your RSI = 51.55. Remove the last digit (5)
Move the decimal one space to the left. Now you have 5.15
Your Risk reward should be 1 : 3.15
Remember that an RSI of 50 ~ 59 is a 1 : 3 Ratio. This formula simply allows you to add the rest of the move to the end of the 3.
RSI = 60-69 / 1:4 (this is a normal safe bet but it doesn't get you the full move)
Use the formula for example. If your RSI = 61.55. Remove the last digit (5)
Move the decimal one space to the left. Now you have 6.15.
Your Risk reward should be 1 : 4.15
Remember that an RSI of 60-69 is a 1 : 4 Ratio. THis formula simply allows you to add the rest of the move to the end of the 4
RSI = 70-79 / 1:8 (this is a normal safe bet but it doesn't get you the full move)
Use the formula for example. If your RSI = 71.55. Remove the last digit (5)
Move the decimal one space to the left. Now you have 7.15.
Your Risk reward should be 1 : 8.15
Remember that an RSI of 70-79 is a 1 : 8 Ratio. This formula simply allows you to add the rest of the move to the end.
RSI = 80-89 / 1:10 (this is a normal safe bet but it doesn't get you the full move)
Or use the formula for example. If your RSI = 81.55. Remove the last digit (5)
Move the decimal one space to the left. Now you have 8.15.
Your Risk reward should be 1 : 10.15
Remember that an RSI of 80-89 is a 1 : 10 Ratio. This formula simply allows you to add the rest of the move to the end
RULES:
Your EMAs must all be lined up in a BULLISH format.
DO NOT Trade between the bands.
This best works against a 200ma below and a 50ma above.
RSI must be set at 14
I have only tested this against USD pairs and Crypto pairs.
*****If you want to use this on a #Bearish market****
You only need to subtract (1) from the formula.
Bullish formula:
RSI 50 = 1 : 3 (add the first 2 numbers after the decimal to this ration and you've got the move)
RSI 60 = 1 : 4
RSI 70 = 1 : 8
RSI 80 = 1 : 10
Bearish formula:
RSI -50 = 1 : 2
RSI -60 = 1 : 3
RSI -70 = 1 : 7
RSI -80 = 1 : 9