Using the indicator can also help predict trends, trend reversals, trend continuations, or stagnate corrections. When used properly, it can help predict rising momentum, underlying demand or supply, and shifts in sentiment. Indicators can certainly help with this if used correctly. Generally speaking, it helps to measure periods of overbought or oversold conditions.Īs traders, our job is to look for an edge in the market. This number is computed and has a range between 0 and 100.Ī reading above 70 is considered bullish, while a reading below 30 is an indication of bearishness. The Relative Strength Index (RSI) is a basic measure of how well a stock is performing against itself by comparing the strength of the up days versus the down days. Then, we’ll provide you with a few relatively unknown techniques. However, in this post, we’ll present four unique, profitable RSI trading strategies you can use when trading.īefore we dive into the RSI trading strategies, let’s first ground ourselves on the basics of the RSI indicator. You have likely read some general articles on the RSI in your trading career, or have at least heard about it. The relative strength index (RSI) is one of the most popular oscillators in all of trading.
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