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How to Trade With Relative Strength Index (RSI) Indicator Hey traders, Relative strength index is a classic technical indicator. It is frequently applied to spot a market reversal. RSI divergence is considered to be a quite reliable signal of a coming trend violation and change. Though newbie traders think that the application of the divergence is quite complicated, in practice, you can easily identify it with the following tips: 💠First of all, let's start with the settings. For the input, we will take 7/close. For the levels, we will take 80/20. Then about the preconditions: 1️⃣ Firstly, the market must trade in a trend ( bullish or bearish ) with a sequence of lower lows / lower highs ( bearish trend ) or higher highs / higher lows ( bullish trend ). 2️⃣ Secondly, RSI must reach the overbought/oversold condition (80/20 levels) with one of the higher highs/higher lows. 3️⃣ Thirdly, with a consequent market higher high / lower low, RSI must show the lower high / higher low instead. ➡️ Once all these conditions are met, you spotted RSI Divergence. A strong counter-trend movement will be expected. Also, I should say something about a time frame selection. Personally, I prefer to apply it on a daily time frame, however, I know that scalpers apply divergence on intraday time frames as well. ❗️Remember, that it is preferable to trade the divergence in a combination with some price action pattern or some other reversal signal. Let me know, traders, what do you want to learn in the next educational post?
Education
by VasilyTrader
10
Why is trading NOT working for me?!Even with the right markets, time frames, systems, rules and ideas… Trading is just not playing out you the way you thought it would. It’s not growing your portfolio at the rate you wished… It’s taking forever to get right… It’s overwhelming and you don’t know which strategy to choose… From my experience this is because of one reason. You’re not treating trading for what it is… Let’s REMIND you… TRADING IS… A fun hobby Trading isn’t a tiring job where you need to sit for hours countlessly looking at a screen. It’s also not a job where you need to be cramped up in a cold room, sitting on an uncomfortable chair, wearing a suffocating ‘noose’ I mean tie, around your neck while you’re waiting for the next pay-cheque. If that was the case, I would have stopped trading 19 years ago. Trading should be treated as a fun hobby. With this hobby… You don’t need a lot of time (half an hour a week will do just fine). You don’t need a lot of effort. (Just a few click of the buttons and a few simple grade-8 maths calculations). You don’t need to worry and stress yourself out. (Opportunities come every day, you can manage your own risk and no one is watching over your shoulder.) In other words this is one opportunity which will give you: More free time, Less work and a hobby that will consistently pay you. TRADING IS… A patience game When you’re enjoying a hobby, you look forward to doing it the next day. It’s like anything you enjoy… Watching TV, playing sports, eating your favourite snacks or even having sex… You’ll adapt, incorporate and most importantly look forward to the next time you do it. And the more you do it, the more you’ll improve, the better you’ll get and the easier it will become. Trading is a patience game. The longer you spend the time and days working on it and improving, the faster, better, and more powerful of a trader you will become. And this will lead to one outcome – Financial Independence. TRADING IS… Ever evolving This isn’t your run on the mill, rat-race kind of hobby. This is one heck of an interesting, exciting and thrilling activity that changes so quickly. Every day, week, month and year you’ll to learn a ton of trading tips and lessons. That’s because the markets are always, changing, evolving, adapting and are even suprising… They evolve with: Ever-changing market conditions. New financial markets added to the exchanges. New created instruments to incorporate i.e. Crypto- currencies, ETFs, CFDs etc… New mega-trends driving new global demand i.e. AI, Machine learning, Electric cars, Cannabis, NFTs, Smart contracts and Extended Mixed Reality. TRADING IS… A lonely journey This is one hobby, where YOUR success entirely depends on YOU. This won’t work if you’re asking your family, friends, dogs and even strangers for their opinions on what to buy and sell. This won’t work if you’re listening to the random billionaire analyst on Bloomberg talking about what they have in their portfolios. This won’t work if you’re scrolling on Facebook for an individual’s trading prediction. (INCLUDING MINE). No! With your system, your money and your time – You need to trade alone and on your own terms… You know what will make you money? Taking more trades according to YOUR criteria. Listening to YOUR rules according to YOUR strategy. Spending more of YOUR time, improving on executing trades well. Notice the word YOUR… Not others, not him, not her – YOU… So take trading for what it is and enjoy the process. TRADING IS… A fun hobby TRADING IS… A patience game TRADING IS… Ever evolving TRADING IS… A lonely journey
JSE:J200Education
by Timonrosso
1
Nasdaq Bullish Entry - S&P500 has broken higher, which is great for the broader markets - DJIA is up 2.57% already in 2023, if January closes higher, that bodes well for the rest of the year - FTSE100 is racing ahead of everyone and everything that I follow, apart from the DAX(Ger40), mostly due to the weighting of the index towards Oil majors - DAX is up >7% - VIX is trading near April 2022 lows, now volatility or fear in the markets according to this asset - US dollar is getting crushed - Bitcoin is pushing back towards 20k All risk indicators are pointing to a push higher in equities as the headline US CPI print today came in as expected and lower than the previous month. Core CPI notched up 0.1% so it isn't crystal clear that inflation is coming down due to the Fed's monetary policy. We also have a weakening US dollar as traders move into the safety of the US Treasuries, which in turn drops the yield of the 10-year note. US10Y is about to test the December 2022 low, and a close below would signal further downside potential. The eurodollar curve is massively inverted as are the US yield curves, signaling that the larger money markets are expecting something is up and that the Fed will have to change policy sooner rather than later. The US has a new speaker and part of the concessions made was along the lines of not lifting the debt ceiling. This could have negative consequences before the new fiscal year starts in October, but is more likely to be a problem in Biden's final year, should we not get a bigger Federal Budget spending program. For now, inflation is waning, which is obviously good news for any asset that was suffering under the rate hike cycle. eg. risk assets like Bitcoin and Nasdaq. Levels on the Nasdaq I am watching include: TP2 = 12570 TP1 = 12221 Resistance at 11605
 With a hard stop at 11080
ULong
by Macrobriefing
The nervousness of BTC patternsAs we can see, there is no signal of going short or long, yet we can still open a test position for long with no Leverage until it breaks the $23,300k. There is a lot of Bearish power grasping bull's force, a quadruple top is really weird to happen. The Ichimoku cloud might seem to be Bull, but the way exposed it is showing the bull's tiredness. Remember the average per month of BTC to go max is $2,5k if we want BTC at tops with approximate $55k this year, so it is still fighting back and forth: really good swings by the way.
BITSTAMP:BTCUSD
by Hungry9Bear9
The most common mistakes in trading Today, I will share a practical secret that I have learned for many years. Don’t hesitate when trading. If you hesitate, then don’t trade in the short term. Many people also have the habit of making trading plans. For example, I will enter the market at any position today, but when the opportunity really arises, I hesitate to make a decision. After the market ends, I find that I have made a profit, but I did not enter the market, and wait until the opportunity appears again. At that time, I thought to wait a little longer, but it turned out to be profitable again, and I still didn’t enter the market. Finally, I finally made up my mind that the next time I was in this position, I would definitely enter the market. As a result, when he entered the market, what he ushered in was a loss. In fact, in the trading market, good entry opportunities are fleeting and will not come often. If frequent entry opportunities appear, it must be a trap. When you have made a plan, all you need to do is Strictly implement, if you have no confidence when you enter the market, then I suggest that you do not make any transactions in the short term, because your plan has been disrupted, and the market likes to confuse your eyes and challenge your bottom line. It's also a psychological game. I make my trading plan every day and strictly implement it, so friends who follow me can receive my plan as soon as possible, which can be used as a reference, but I will choose to enter the market at the first time, if you hesitate, choose the second The second or third chance to enter the market, the probability of loss will increase a lot, so don’t do this, you can consult me to get the latest plan. ❤️Please, support my work with like, thank you!❤️
OANDA:XAUUSDEducation
by DailyPlan
18
TRUUSDTThe cryptocurrency market is known for its volatility, and pump-and-dump schemes are a common occurrence. However, there are legitimate cryptocurrencies such as stablecoins, which are designed to minimize price fluctuations by pegging their value to a stable asset such as a fiat currency. You believe that investing in a stablecoin that is pegged to a fiat currency and has a value close to $1 can be a profitable strategy. It's noteworthy that this stablecoin has been listed on major exchanges, and its value may fluctuate only slightly around its target price. Moreover, it appears that this stablecoin has received support from various governments, which may add to its credibility. However, it is essential to keep in mind that investing in cryptocurrencies carries a high level of risk, and it's always recommended to conduct your research and seek advice from financial experts before making any investment decisions. Binance and coinbase love this..
Long
by robinhoood
3
BITCOIN UPDATE: WHAT IS THE TRENDThe question of BTC was if it could surpass the crucial 24K level, which marks the difference for a new bull market. So far, BTC has not yet confirmed the 24K, which means that the trend still looking for key action and it can stay for some time stable before a new breakout. From a long-term perspective, a BTC value above 18K is seen as positive , and 20K is important for the trade view that BTC should hold it. As for the current trend, there is a good chance that the volume activity can have a new volume in the range between 21,400 and 21,700. This range is considered a volume zone where BTC can have some gains. IF BTC is not able to hold this zone, then it should, at last, holds the 20200 USD as the most important zone. BTC for a low time frame BTC is still in a breakdown trend from the important key level of 24K, but it means not that it's broken into a confirmed downtrend as there is a good chance BTC will return to up 23K. Markets change with time, and it's important to stay updated with last trends in the price action of BTC.
Long
by Goldenbreakout
8
GoldViewFX - THE ART OF RANGE MANAGEMENT Hey Everyone, Here at GVFX, we are currently buying dips. What that means is that we buy on the dips and therefore only concentrate on long positions/buys with the odd sells for fun. As mentioned before, having both sell and buy positions open in your account will affect your psychology and in turn, your trading decisions. Now a question that typically arises here is why would it still be advisable to buy when the market is pushing down? Firstly, let me assure you that the same algorithms, experience and strategies that we use to achieve a 97% hit rate with our bullish directional bias also gives us the heads up, or down if you will, on when the market is going down. Don't think for a moment that we only know how to analyse a bull market or up trends. We share targets/signals for both buys and sells but choose not to hedge out of choice. Our published results remain consistently profitable month in month out!! In my experience, in the current market conditions, it is much safer to get out of a stuck buy position than a stuck sell position. That's not to mention the clean PSYCHOLOGICAL PROFILE that is achieved when trading in just one direction. And although hedging can in theory work, it requires years of experience and in the end, is simply not worth the effort. I am more than capable of hedging effectively but the fact that I do not should tell you something. Let us look at an example to further answer the question highlighted above. When you have short-term bearish momentum down, we take buys from key supports or MAs which act as dips. Remember that the market does not go up or down in a straight line (with the rare exception of short-lived parabolic moves). So, when the market is going down and hits one of our key levels, a buy from that point will go back up for 20 to 30 or 30 to 40 pips (this number of pips has been calibrated based on back testing) before resuming back down. You can think of it like this. The market moves in a zigzag manner. The zig is that part of the leg which is going down to create lower lows (if the downward trend is continuing). The zag is that part of the leg which takes a breather and pushes back up with momentum for our entry and quick pip-take range to create a lower high (if the downward trend is continuing) before heading back down again. We catch the right and safest waves (buys) in and out and surf to success. When price hits a key structural support or stops creating lower lows and lower highs, we then reassess for entries with a wider range of pip capture. Hope this post helps our followers to understand how we keep our psychology strong!! GoldViewFX XAUUSD TOP AUTHOR
OANDA:XAUUSDEducation
by Goldviewfx
18
What I've learned after backtesting So, I love backtesting. Recently I've found my self in a 3% drawdown and needed to figure out what the cause of it was and trading at this moment won't give me that answer. So, I decided to backtest. Here is what I found: 1. I'm overtrading my system I am a proud swing trader who got back into scalping the market in December 2022. It was mot my idea, but I thought I could handle it. I started out great, but then the market reminded me why I left the lower timeframes. 2. I'm not holding my trades long enough. Thanks Prop Firms! Since joining a prop firm my mind has been changed to holding trades for less time than I normally would. I don't mind holding trades for weeks or months, but prop firms give you time limits during evaluation periods. That was and still is a huge adjustment for me. Being a swing trader means I have to let my profits run. So, now, I've found a prop firm that will allow me to hold my trades with no time limits. 3. Not holding trades to my weekly and monthly targets. I need to see past my daily targets. Normally my daily risk to rewards are between 1:1 and 1:2. I'm in drawdown because I'm not recovering from my losses with these risk to rewards. So now, I'm only taking trades with RR over 1:2 and better. This way I'm trading less, holding longer(sometimes), and getting the best bank for my buck. Backtesting helped me see my mistakes and how to correct them. This is called fixing your strategy. Notice how I'm not changing my strategy. I'm tweaking my strategy to fit my mental capacity and trading style. If you find you're in a drawdown and can't see, stop trading and backtest what you're currently doing and find a way to stop the behavior thats causing your drawdown. Then, stop doing that particular thing so you can see better results. I pray this has helped you. Let me know your key takeaway by commenting below.
Education
by ShaquanLopez
53