The traditional use of the RSI indicator

The traditional use of the RSI indicator

The traditional use of the RSI indicator to say when the exchange market is overbought or oversold when it is, any reading below 20 indicates that the market is oversold and any reading over 80 indicates that the market is overbought.
But you bothered in forex trading as you should know by now that no indicator is to be used in isolation, you are also to consider the readings of other indicators, and an indicator that I use that I found to be very effective in combination with MACD and RSI is stochastic oscillator.
Here's how I use these indicators. I look at where the RSI is on its mark is that for example, if RSI is below its mark as I know we are in down trend.
And if their brand over the line or 50 then I know we are in uptrend it will certainly check the MACD divergence, and also check the stochastic to see if we are overbought or oversold traditionally each reading below 30 indicates oversold market condition and any reading above 70 indicates overbought condition for the market.
The RSI is a very simple technical tool that can be used in combination with other indicators to make a commercial decision and lock in profits from foreign exchange market.

Note here that the course to get into any position in the Forex market is best to get into the break at the pivot point, because this is the safest place to enter a trade according to my experience in trading Forex. Understanding RSI may be a step towards success in your trading




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