$ETH FVG (Fair Value Gap) can be used with the RSI (Relative Strength Index) in trading as follows:
Trading Strategy
- *Identifying FVG:* Identify the fair value gap in the market.
- *Using RSI:* Use the RSI to determine if the market is in overbought or oversold territory.
- *Entering a Trade:* Enter a buy trade when the market is in oversold territory and there is a bullish FVG, or enter a sell trade when the market is in overbought territory and there is a bearish FVG.
Example of a Sell Trade
- *Bearish FVG:* Identify a bearish FVG in the market.
- *RSI in Overbought Territory:* Use the RSI to determine if the market is in overbought territory (above 70).
- *Entering a Sell Trade:* Enter a sell trade when the previous two conditions are met.
Important Notes
- *Confirmation:* Wait for confirmation of signals before entering a trade.
- *Risk Management:* Risk should be managed well to avoid large losses.
- *Comprehensive Analysis:* Conduct a thorough analysis of the market before making trading decisions.