RSI Trading Strategy Relative Strength Index — Transcript

Full transcript

1. 0:00if you want to learn how to use the RSI
2. 0:02indicator properly please continue to
3. 0:05watch this video I'm here to break your
4. 0:07misconception of 70 level being
5. 0:10overbought and 30 level being oversold
6. 0:13I'm going to show you why that is the
7. 0:15biggest lie in day trading
8. 0:18welcome back to the channel everybody my
9. 0:21name is Artie and this is the moving
10. 0:22average a show where we discuss
11. 0:24everything day trading to keep you
12. 0:25profitable let's not waste anybody's
13. 0:27time get right into the charts and show
14. 0:29you the RSI alright looking at the RSI
15. 0:32the standard settings for it is
16. 0:35overbought at 70 level and oversold at
17. 0:39the 30 level so many people think that
18. 0:42when price gets to this level right here
19. 0:44it will continue the opposite direction
20. 0:46vice versa when it gets here it will
21. 0:49continue to the other direction this is
22. 0:52true however this does not portray what
23. 0:56the price actually does let me show you
24. 0:59what I mean right now the RSI is
25. 1:01extremely overbought at 76. you're
26. 1:05getting some doji candles you think the
27. 1:07price might reverse and what ends up
28. 1:09happening is price continues to go up
29. 1:13and up and up and up and up and up and
30. 1:18up and up wiping out every single stop
31. 1:22loss along the way price can stay
32. 1:25overbought or oversold for a very very
33. 1:29long time what you are looking for is a
34. 1:33break of a trend line then and only then
35. 1:35should you get into a trade to the
36. 1:39opposite direction now once price breaks
37. 1:41a trend line it will not always reverse
38. 1:44the second option for when price fails
39. 1:47to go in the opposite direction is an
40. 1:49area of consolidation so what I would
41. 1:52like you guys to do is go into your RSI
42. 1:54settings and get rid of the upper Band
43. 1:58Middle band and lower band remove the
44. 2:01RSI background fill now you are left
45. 2:03with something like this the standard
46. 2:05moving average that they have built into
47. 2:07the RSI will give you an indication of
48. 2:09which way price is going the RSI is a
49. 2:12momentum indicator showing momentum so
50. 2:16if it's overbought the moment is to the
51. 2:18upside as the RSI is above this yellow
52. 2:21line it's showing a lot of bullish
53. 2:24momentum if it is below it is showing a
54. 2:26lot of bearish momentum use it as a
55. 2:29momentum indicator not as a reversal
56. 2:31indicator now this video is going to be
57. 2:33a part of the intermediate playlist so
58. 2:35if you haven't seen all of those videos
59. 2:36check it out right here if you guys
60. 2:38enjoyed this type of content nice short
61. 2:40to the point make sure you're dropping a
62. 2:42like on these videos and subscribe if
63. 2:44you have not already thanks so much for
64. 2:45watching and we'll see you in the next
65. 2:46video