Mdraghib
Well-known member
Many beginners use the RSI as a direct buy or sell signal, but I've found it works much better as a confirmation tool. For those wondering what is Relative Strength Index (RSI), it is a momentum indicator that measures the speed and strength of price movements to identify potential overbought and oversold conditions. An RSI above 70 doesn't always mean the market will reverse, and below 30 doesn't always signal a buying opportunity especially in strong trends.
I usually combine RSI with price action and support/resistance before entering a trade.
How do you use RSI in your trading? Do you rely on the default 14-period setting or combine it with other indicators?
I usually combine RSI with price action and support/resistance before entering a trade.
How do you use RSI in your trading? Do you rely on the default 14-period setting or combine it with other indicators?
