Simple RSI Trading Strategy for Beginners! โก๐๐
Want to catch better entries and exits?๐ค Here's how you can use RSI (Relative Strength Index) smartly:
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Step-by-Step Strategy:
1. Add RSI (14) to your trading chart.
โ (Most platforms have it built-in!) โ๏ธ๐
2. Look for Oversold (Buy) Zones:
When RSI falls below 30, it signals the asset might be oversold.
Wait for a bullish price action confirmation (like a green candle or a breakout).
Then consider entering a Buy position. โ
3. Look for Overbought (Sell) Zones:
When RSI rises above 70, it signals the asset might be overbought.
Wait for bearish confirmation (like a red candle or breakdown).
Then consider selling or taking profits. โ
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๐ฐ Bonus Tip โ RSI Divergence:
If price makes a new high but RSI makes a lower high โ Bearish Divergence (possible reversal down)๐
If price makes a new low but RSI makes a higher low โ Bullish Divergence (possible reversal up)๐
Use divergences to spot early trend reversals! ๐
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Important: ๐จ
Never trade based on RSI alone!
Always combine it with support/resistance levels, moving averages, or trendlines for safer trades. โ๏ธ
Trading becomes powerful when patience meets confirmation!
If you want to learn more trading strategies like and comment "Strategies".