🧠 Beginner Strategy: The 3-Day RSI Pullback
If you're new to crypto trading and want a low-stress, data-backed strategy, try this: the 3-Day RSI Pullback strategy.
📊 What is it?
This strategy uses the Relative Strength Index (RSI) on the 3-day timeframe. It helps you spot when a coin might be temporarily oversold — a potential dip-buying opportunity.
🔧 How it works:
Choose a strong coin (e.g. BTC, ETH, or trending altcoins).
Look at the 3-day chart and check the RSI indicator.
If RSI drops below 35, it signals oversold conditions.
Enter a small position (e.g. 10–20% of your allocated capital).
Set a target at recent resistance or +8–12% above entry.
Always set a stop loss (e.g. -5%) to manage risk.
📈 Example:
Let’s say ETH is at $2,800 and RSI on the 3-day chart hits 32.
You enter at $2,800 with a target of $3,100 (+10%) and stop at $2,660 (-5%).
After 5 days, ETH moves up to $3,120 — you exit with a +11% gain.
✅ Why it works:
Oversold RSI levels often indicate panic or fear. In strong coins, these dips often bounce. This strategy waits for weakness, then enters with a clear plan.
🔁 Tip: Backtest this on your favorite coins before going live. Patience and discipline are key!
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