In today's post, I want to give away a chart that has made me a lot of money dating back
I also want to go in to detail on how I use the RSI to determine when to get in and out of Bitcoin by determining bearish and bullish control as well as the transition zones. Not the 3 day, daily, 4 hour, hourly or... god for bid, the 1 minute chart.
This is like a birds eye view of the market where we pick our spots to enter in to positions where our thesis is quickly invalidated.
First, let me explain the RSI . RSI stands for relative strength index and it is a momentum oscillator that is calculated with average price closings and given a ratio from 0 to 100.
Think of 50 as the pivot zone for bullish and bearish control of the market.
In Bitcoin's case, above 54 = Bullish and Below 44 = Bearish .
The key to understanding this chart is that it is truly about waiting for the proper set-ups and not rushing in and over trading.
I hope the markets have been treating you well and you've been crushing all of your trades.