How to Turn the RSI Indicator into a Secret Weapon in Trading? 🌸🌼 Profitable Strategies ✅
Read carefully and understand what is in the lines, as there is experience in the words that will benefit you throughout your life in the world of trading 📝✅👍🆕
⚡1. Overbought and Oversold Strategy
Buy at oversold levels: When the RSI drops below 30 and then rises above it, it can be a signal to buy.
Sell at overbought levels: When the RSI rises above 70 and then drops below it, it can be a signal to sell.
⚡2. Divergence Strategy
Positive divergence: Occurs when the price reaches a new low while the RSI rises, which may indicate a potential bullish reversal.
Negative divergence: Occurs when the price reaches a new high while the RSI drops, which may indicate a potential bearish reversal.
⚡3. Breakout Strategy
50 Breakout: When the RSI moves above or below 50, it can indicate the beginning of a strong trend. Crossing above 50 may indicate the start of a bullish trend, while crossing below 50 may indicate the start of a bearish trend.
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