🎯 What is Stochastic RSI?
It is an indicator that combines:
• Relative Strength Index (RSI)
• And the Stochastic Momentum Indicator (Stochastic)
It means it gives you more accurate signals about overbought or oversold in a more sensitive way.
✅ Why is it important for beginners?
• It helps you know when the market is ready to rebound 📉📈
• Its signals are faster than the regular RSI
• Excellent for day trading or swing trading 💸
📲 How to add it to the TradingView platform?
1️⃣ Open the chart on [TradingView]
2️⃣ Click on “Indicators”
3️⃣ Type: Stochastic RSI
4️⃣ Activate the indicator and it will appear directly under the chart.
🔍 How to read the indicator?
• Above 80 = the market is overbought 🚨 (beware of a correction soon)
• Below 20 = the market is oversold 🚨 (possible buying opportunity)
🎯 Strong signals when the two lines cross in these areas!
✅ Quick strategies:
🔸 Cross from below to above in the area below 20 =
📈 Strong entry opportunity (a rebound is coming)
🔸 Cross from above to below in the area above 80 =
📉 Possible correction soon (exit opportunity)
💡 Use it with support/resistance or a confirmation candle, and you will enter with more confidence.
⚠️ Important alert:
• Don’t rely on it alone!
• It doesn’t work well in very volatile markets.
• It’s best to combine it with indicators like MACD or Volume
💥 Remember:
The secret is not in the indicator itself… the secret is to understand how the market thinks and enter before everyone sees the opportunity!
🔥 Keep learning the secrets of the market and always stay a step ahead of everyone.
