Absolutely! This is a great question to ask.
Learning How to Configure the RSI
• Use RSI with a period of 14 for effective results (the default is useful for most time periods).
• Sign of overbought: 70
• The oversold point is set at a level of 30.
You can look at them as reversal zones, but you shouldn’t rely on them too much. To do well, combine your technical analysis with what price action is doing.
Strategies for Trading With Moving Averages
In TradingView, I place MAs directly on top of the RSI line which is called “adding indicator on indicator.”
EMA 5 is a fast signal that reveals instant RSI changes.
•EMA 14 (Equals the base RSI period) shows whether the trend remains valid
• SMA 50 – filter that smoothes out the trend and helps you spot real trends
A signal from RSI that crosses above all 3 can help me go long, but I also need other support from the market.
Which Of The Two Indicators Is More Suited?
RSI works well, yet no indicator should be trusted all alone.
You can also do these exercises when you have RSI.
Stochastic RSI, since it is more sensitive, is especially useful for fast trades.
• MACD – lets you identify when the momentum shifts and new trends appear
Volume or OBV informs if RSI rises and falls are because of real buying or selling.
Here’s the final tip for you:
The main thing is to combine RSI with the movement of prices, volume and the overall structure of the market. This is what gives us the biggest advantage 💪