Simply how to use the RSI indicator with candlesticks to identify opportunities
📊 Relative Strength Index (RSI) is a simple market reading
Have you heard about the RSI indicator and want to understand it quickly? Follow this simplified explanation to learn how to read it and use it with candlesticks to enhance your trading decisions.
1. What is RSI? 🤔
Short for Relative Strength Index.
A number that ranges between 0 and 100 that measures the strength and dynamics of price movement.
2. Basic levels 🧭
Above 70 → Overbought area
Below 30 → Oversold area
3. How to read it practically? 🔍
1. Open the time frame (hourly, 4 hours, daily).
2. Set the RSI to the default setting (14 periods).
3. Watch if the indicator line exceeds 70 or drops below 30.
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4. Combine RSI with candlesticks 🕯️
Example:
We found a Hammer candlestick at a support level, and the RSI appeared below 30.
This is a convergence of a strong buy signal: Reversal candlestick + Oversold indicator → Entry opportunity.
5. Smart tips 💡
Do not rely on RSI alone: Combine it with a candlestick pattern or moving average.
Set a stop loss: below the point where the green light appeared.
Try on a demo account before using it with a real balance.
