🚨 CONFESSION: My Biggest Trading Mistake—and the 1 Indicator That Saved My Portfolio 🚨
I used to be a reckless trader. I'd FOMO into pumps, ignore my stop losses, and chase quick gains based on "insider" tips. I lost thousands of dollars in a single week. It was a brutal lesson, but it led me to a simple strategy that changed everything.
The secret? I stopped chasing pumps and started using one key indicator to find low-risk, high-potential entries. It’s called the Relative Strength Index (RSI), but not the way most people use it.
Here’s my 3-step strategy to use the RSI like a pro:
* Stop looking for "oversold" (RSI < 30). This is a rookie mistake. A coin can stay oversold for weeks and keep dumping. Instead, look for positive divergence on the 4-hour or daily chart. This is when the price makes a new low, but the RSI makes a higher low. It's a powerful signal that selling pressure is weakening.
* Look for "hidden divergence." This is the reverse and can signal a continuation of the trend. When the price makes a higher low, but the RSI makes a lower low, it often indicates a strong buy signal.
* Always pair it with a major support level. A single indicator is never enough. I only take a trade when I see a strong RSI divergence at a key support area. This combination drastically increases my win rate and reduces my risk.
I've tested this strategy on coins like $SOL, $BTC, and $ETH and the results have been incredible. It’s not about luck; it’s about a disciplined approach to market psychology.
What's your favorite indicator, and why? Share your strategies in the comments! 👇
#CryptoTrading #BinanceSquare #CryptoTips #Bitcoin #TradingStrategy #RSI
