A personally tested method, using 500,000 yuan to achieve a record of 10 million yuan, using only this one trick (RSI indicator + a swing trading strategy with a super high winning rate).
Learn to read RSI in 5 minutes and accurately determine the buying and selling points! The winning rate is as high as 99%, suitable for everyone!
I am a full-time Bitcoin trader with tens of millions of dollars in assets. I withdraw 100,000 yuan from the cryptocurrency market every month and I don’t feel any impact. I live a leisurely life.
Be free, without intrigue and conspiracy, and live the life you want.
When it comes to cryptocurrency trading, RS has always been my first choice for judging the top and bottom. Using this method, I made 10 million from 500,000 in one year. If you also like
If you want to double the coin and intervene in the main uptrend, then you must read this article carefully!
This strategy is designed for active traders who hold positions for a few days to a maximum of several weeks.
1. Identify price extremes (bullish or bearish)
The first step is to identify price extremes. The easiest way to do this is to compare the price to a simple moving average, such as SMA20+.
20 represents the average price of the past 20 trading days. The greater the distance between the current price and SMA20, the more significant the extreme price.
The chart below shows the extreme price action for Tilray Brands Inc (TLRY) stock.
Starting from March 23, the price suddenly rose sharply and reached a peak on March 27, indicating an extreme upward price trend (green arrow).
At that time, the price was well above the 20-day moving average.
Similar price extremes, but on the bearish side, can be seen in Biontech (BNTX) stock.
Extreme downside, at this time the price is significantly below SMA20.
2.2-period RSI below 10 or above 90
Using RSI(2), we try to identify possible rebound (mean reversion) moments. We do this by looking for RSI(2) below 10 on the chart.
This can be achieved by moving above 90 (bullish) or above 90 (bearish).
In the chart of TLRY, we added the RSI(2) indicator. You can see that starting from February 24, 2022, its value was above 90.
Indicating extremely overbought conditions.
Moreover, on February 25, 2022, the RSI was still above the 90 level.
As for BNTX, we observed that the RSI(2) was below 10 from January 18 to January 21, 2022.
Extreme price movements upward or downward, combined with an RSI(2) value above 90 or below 10, are two necessary conditions for the application of this strategy.
3. RSI(2) rises above 10 (bullish setup) or falls below 90 (bearish setup)
This is the last step before we determine the actual entry setup. The RSI(2) value drops from +90 to below 70, which is a signal to go short.
In the chart of TLRY, the RSI (2) was just below 70 after the trading day on March 28, 2022.
When the RSI(2) value falls below 10 and then rises above 30, it is a signal to go long.
This can be observed in the chart of BNTX, dated January 25, 2022.
Only after completing the first 3 steps can you make a buy or sell setup.
4. Open a position
Only after completing the first 3 steps can you open a position.
Using Buy/Sell Stop Limit orders, we can determine the entry point very precisely. With a Sell Stop Limit order, we define the stock price
It must first continue to fall below the signal candlestick low for the short position to become valid (using TLRY as an example).
For BNTX, using a Buy Stop Limit order, the price must first rise above the last candlestick high before the order becomes valid and executed.
For BNTX, the order was triggered on the next trading day, just 6 days later when the price hit SMA20, which was the first target.
Depending on how you further manage your position, you can take partial or full profits at this level. For the remaining portion, the stop loss can be adjusted upwards.
As for TLRY, the price initially rose slightly and the sell order was not triggered immediately. As a result, the RSI (2) indicator entered the oversold area again on March 29, 2022.
The next day, a bearish Doji candlestick was formed and the RSI(2) fell back below 70 for the second time.
Set a modified short entry below the low of this Doji candlestick and set a stop loss above the high, definitely this mean
Settings worth considering in regression strategies.
During this process, the position was never threatened and SMA20 was touched on April 7, 2022.
Other Similar 2-Period RSI Trading Strategy Examples
Long WB
1. The price moves extremely downward and deviates significantly from SMA20
2. RSI(2) indicator <10
3. RSI(2) indicator > 30 (However, since the candlestick high indicated by the blue vertical arrow was not broken, no entry was made the next day)
4.RSI(2) falls below 30 again
5. RSI(2) > 30
6. This time, the candlestick high indicated by the green arrow was broken on the next trading day (long entry with stop loss set below the low of the falling price range).
7. The first target is achieved (SMA20)
Long IAS
1. The price moves extremely downward and deviates significantly from SMA20
2. RSI(2) indicator <10
3. RSI(2) indicator > 30
4. The candlestick high indicated by the green arrow is broken (for a long entry, place a stop loss below the low of the falling price range).
5. The first target is achieved (SMA20)
Short EIGR
1. The price moves extremely upward and deviates significantly from SMA20
2. RSI(2) indicator > 90
3. RSI(2) indicator <70
4. The low of the candle indicated by the orange arrow is broken (short entry with stop loss set above the high of the rising price range).
5. The first target is achieved (SMA20)
Some important things to note when using the 2-period RSI strategy
Make sure price extremes are clearly visible. The greater the force and speed at which prices deviate from the moving average, the greater the likelihood that a subsequent correction will occur, pushing prices back toward the moving average.
Always follow your stop loss! Strong moves can sometimes last longer than expected. Especially for moves that have fundamental reasons, such as company earnings far exceeding expectations, things can move very quickly in a very short period of time.
Do not try to predict reversals in advance, wait patiently for the RSI(2) to recover from an overbought or oversold condition, and always use a slight rise above or fall below as a trigger.
Place a stop-limit order at the candlestick high or low. By doing this, you can avoid many false signals.
Don’t rely on just one indicator to develop your strategy, but try to find other elements that support your views and setups.
A bounce off a significant support level of the time frame, or the pattern of the signal candlestick itself (bullish hammer or bullish engulfing pattern, etc.). The more elements of convergence, the stronger the setup!
BTC ETH PEPE