There are some indicators which works very well when you go for any trade. Not all of the indicators are useless, but some works very well. And in this post I will try to discuss about RSI indicator and how can you get best signal with the help of RSI indicator.
First of all let know about when RSI is at overbought and when it is at oversold positions. When RSI is above 70 market may be overpriced and go for a pullback which means that market has more chance to go downside when RSI reaches 70.
Whenever you see that RSI is at 70 and you find the candles at the resistance level, then it is 80% sure that the market will go down.
Now if I talk about oversold position, when RSI is below 30, it indicates that market is at our sold position and is prime for a bounce quickly.
Also in this case when RSI reaches 30 and you see that candles are at support level then there is 80% chance for the bounce. These are the golden signals which may come late but are more accurate.
There are other multiple ways where you can use RSI indicator which gives you accurate signal. When you combine RSI with price action you will get more good signals.
Also you can compare RSI with MACD when you see a crossover in MACD and RSI at 30 or 70 then you can take a trade towards either direction which will give you a good benefit. This is a short brief about RSI indicator which you can use like a pro.
THANK YOU!
