So the support breakout was confirmed by RSI, and looked like a reliable and valid breakout, specially when candlesticks #5 and #6 accurately and precisely retested the broken support line: I am going to show you a long trade setup now.

Look at candlesticks #2 and #3 and the way they retested the broken resistance, and how the broken resistance worked as a strong support and did not allow any of these candlesticks to go down and close below it. I am thinking about having an organized signal program and I have already started consulting with my friends. Thanks for the above article. Aug 14, 2020 #1 Hello, Is there a way to scan a watchlist with the current price has just touched RSI 70% or 30% or within the last 5 bars? Thanks for this valuable information. Buy on a significant volume surge when the RSI drops below 30. RSI is considered strongly bullish if the RSI exceeds 70 this means the security (index, stock, ETF) has trended up strongly over the past analyzed period. I will do my best to post the setups I locate. That is very good Idea. Now many a times am going to try using this. That is a bit like playing the fruit machines at the casino…RSI and MACD does not always confirm each other or the same trade setup. Financial data sourced from CMOTS Internet Technologies Pvt. The following is a simple trading system based on combining the RSI with our volume indicators: When the RSI rises above 70, sell on a significant volume surge. The Relative Strength Index (RSI Indicator) is used to see overbought (above 70%) and oversold (below 30%) levels. In this case simple trading system would suggest to: The following is a simple trading system based on combining the RSI with our volume indicators: The RSI compares the magnitude of recent gains to the magnitude of recent losses. In this article, I am going to talk about the 50 level that sits between the 30 and 70 levels. Commenting on the RSI settings.14 compared to 9.RSI is a lagging indicator,as others are.The 9 picks up the pace a little.Price action being the primary along with patern analysis and BBands.RSI I look at lastly as a small helper. Just because the downtrend was too strong, the broken resistance was retested very strongly by several candlesticks, before the price goes up seriously. So I would not trust the resistance breakout if I wanted to trade based on technical analysis and resistance breakout. Right when the bearish engulfing pattern was forming, RSI retested the 70 level, but it could not break above it, and it went down when the candlesticks #2 and then #3 formed. It is a very good confirmation tool to help you pick your entry, stop loss, and targets with confidence. Thanks a lot, you have made trading easier. It is confusing, one of these days I will have a lot of clutter on my charts again and spend hours analysing al of it. The slope of the RSI is directly proportional to the velocity of a change in the trend. Follow the candlesticks numbers on the chart below. Analysis paralysis. Candlesticks #5 and then #6 strongly confirmed that bulls had taken the control. RSI confirmed that the resistance breakout was valid, because it had moved up from the oversold area (the red zone) to the 50 level area and when candlestick #1 closed, RSI had already broken above the 50 level. For all you hardcore technicians, below is the relative strength index formula example. Price Data sourced from NSE feed, price updates are near real-time, unless indicated. Alerts, Scan

This could be interpreted like: "a stock after being in overbought condition started to move down and it could be a sign that buying power of the bullish traders became exhausted".

HELOT, YOUR NAME IS ALMOST EQUAL TO (JESUST) WHOM YOU ANSWER HIS NAME. MONTHLY RSI ABOVE 70. Please be aware of the risk's involved in trading & seek independent advice, if necessary. I would like to ask you, how many trades you did this August? For me, that downtrend was too strong to be reversed so easily. Finally, candlestick #4 closed as a bullish candlestick above the broken resistance, indicating that most probably the price wanted to go up.

Now this artice. Wilder believed that tops and bottoms are indicated when RSI goes above 70 or drops below 30. Signals can be generated by looking for divergences and failure swings. I like the way you explain the effectiveness of the RSI, it is a sure winner. This is an important confirmation indicating that the uptrend is exhausted and the bears have taken the control: Additionally, there are already two other RSI confirmations for this strong bearish engulfing pattern: When the uptrend was strong and the price was going up strongly, RSI had broken above the 70 level and was moving above this level in the overbought area (the red zone). I am not shooting down your articles, you are still the best coach available on the www, and, you’re FREE! if RSI is going towards 70 level, it shows both overbought level and strength of bulls, trend works like a pendulum, after a certain height, it has to come down. This is how the RSI 50 level helps us confirm our trade setups. When the RSI rises above 70, sell on a significant volume surge. Buy when RSI moves above 50%, Sell when RSI drops below 50%. Controversially, a stock may continue to decline by remaining in oversold condition. Now, let’s say you either missed the above bearish engulfing pattern to go short, or you don’t trade based on the candlestick patterns, and for example you trade based on technical analysis and support/resistance breakout. YOU ARE THE BEST EVER COACH I EVER HV IN LIFE. When it is above 70, market is overbought. It can, but why you shouldn’t have Bollinger Bands on the chart when it helps you a lot? If so it would be another easy way to set a long trade with the candle stick #3 (confirmation candle) while it was forming.

I am also thinking of making a facebook page (like you suggested in another post ) and post all my daily analysis and encourage others to do it. But the question is: could that support breakout also be confirmed by RSI? EMMANUEL FROM NIGERIA. When candlestick #2 which is the main candlestick in this strong bearish engulfing pattern closes and the next candlestick opens, RSI is actually below the 50 level already. But when a strong bearish engulfing pattern formed by the candlestick #2, RSI had already broken below the 70 level and was moving almost between the 70 and 50 levels. I need more confirmation. Let me show you some examples. Examples, D04.04_rsi_zmb bout...rsi 69 (6..6)(12..12)...(6..12m ago), Xxd04.05_rsi_emb bout...rsi 50 (6..6)(12..12)...(6..12m ago), D02.08_rsi_zmb low...rsi 40 (6..6)(12..12)...(6..12m ago), D04.01_rsi_emb bout...rsi 69 (6..6)(12..12)...(6..12m ago), Disable: 2 months agomin(6,monthlyrsi(14) )less thannumber50. As an example when 14-bar period selected for the RSI:Average Gains = SUM (Price Change of positive bars within past 14 bars) / 14Average Loss = SUM ( Absolute value of (Price Change of negative bars within past 14 bars)) / 14. RSI 50 level can be used as a strong tool to confirm the different kinds of trade setups from any trading system. Another popular way to generate trading signals is to do it on the crossovers of the RSI and 50% center-line around which RSI oscillates by assuming that RSI reading above 50% level is a sign of Bullish trend while readings below 50% reveal Bearish trend. It surely help me to my trading strategy. i would like to know, thank you. The distance traveled by the RSI is proportional to the magnitude of the move. Backtest history Backtesting considers values as per completed candles of the timeframes, this may cause the results to change for the latest candle/time as its candle is being built.

RSI ranges from less than 30 to over 70. TRY TO POST ANY TRADE SETUP YOU LOCATE IN TIME. Another insightful articles – will definitely have t spend some time looking at this indicator and seeing if it works with my trading strategy. There is no special reason. Have gained a lot about trading RSI, although sometimes i trade the indicator. New: LIVE Alerts now available! All of these RSI reactions mean that uptrend was exhausted and bears had taken the control, so that the bearish engulfing pattern formed by candlesticks #1 and #2 was reliable enough to go short: This is how RSI gives a strong confirmation for a candlestick pattern. What Are the Central Banks Doing in Different Countries? If you are comfortable with the candlesticks and BB, then you don’t need any other thing. may good bless you, Thank you for your comment, and glad to have you here.