The Relative Strength Index (RSI) is a well versed momentum based oscillator which is used to measure the speed (velocity) as well as the change (magnitude) of directional price movements. Essentially the RSI, when graphed, provides a visual mean to monitor both the current, as well as historical, strength and weakness of a particular market. The strength or weakness is based on closing prices over the duration of a specified trading period creating a reliable metric of price and momentum changes. Given the popularity of cash settled instruments (stock indexes) and leveraged financial products (the entire field of derivatives); RSI has proven to be a viable indicator of price movements.
Price is dipping lower as expected. We talked about the dip happening on our youtube show, and so far buying interest interest is coming in on dips.
I laid out areas of support on the chart around the Fib level and the area on the RSI. Low trend momentum should keep us inside the trading zone of 3800ish to 4100ish.
Happy trading!
Yesterday EURUSD H&SH pattern trading idea has not been completed as H&SH pattern was violated. Now in this video setup we using RSI divergence Trading Strategy to short EURUSD. This video is based on my trading plan, that i wanna take an opportunity. Also you may learn on how to trade RSI divergence in this video. This video at the same time and trading plan and...
Price in range
Far left range top has divergence followed by bearish movement to range bottom
Range bottom meet our RSI 80-20 reversal rules follwed by a bullish movement to the range top
Macd showed example of over bought and oversold stochastic levels
Buy and Sell stops listed on chart
Take profits are listed on chart.
Any questions on RSI 80-20 or my dual...
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