There are 4 RSI trading signals, which traders have to know when to engage in any transaction. They have nothing to do with perakuplenastsyu or resale. RSI (Relative Strength Index) was never designed with this in mind. The prices which are pushing RSI above 70 and not necessarily to outbid, and the prices, which are pushing up RSI below 30, not necessarily resold. If you use the RSI, then you'd better not use it, because these signals can lead you.
Four trade RSI signals consist of two types: the divergence and turns. Most traders are very comfortable to find differences in their price charts. There are two pictures discrepancies positive pulse power up or bovine, and the negative pulse power down or bearish. They are commonly referred to as a positive divergence and bullish divergence and negative divergence or bearish. Theoretically, if you have a positive divergence, the price should go up, and vice versa for negative differences.
The second signal is less well-known and almost not considered. They reversals and, as with the divergence, there are two. Positive or bullish spread pushes the price, and the negative or bearish reversal repels price.
You may be wondering what the difference is, as it sounds like they are doing the same. A positive divergence signals when the RSI is above the chart, but the price is lower. However, the positive treatment of notes when the RSI RSI on the chart below, but the price higher. If you find similar situations and watch them, you can make the observation that the positive differences do not occur in the same circumstances, and you'd be right. However, there would be a negative divergence and negative reversals.
Turns indicate when a trend is ready to recovery. On the divergence signal when the trends are moving. Statistics show that in the downstream market, any smart trader knows to look for negative reversals, and on the rising market to look for the positive reversals. Then there are differences in the trend of counter, thus making them more risky to trade. Turns better to trade as growth trends. Impulse creates trends. Being on the right side of trade, you know, if you join the trend, and it will tell you the response signal.
Concept RSI are easy to perform, and they are on the & # 39; objective, because it can be programmed differences and reversals. This was done using the RSI Paint index. This indicator is used in the diagram MetaTrader 4 and can find any discrepancies, and turns, or both. Most traders who first see the RSI Paint Indicator, quite surprised by the number of signals that can be from & # 39; will be a short period of time, regardless of the time period and the currency pair. When all seen together, they provide an impetus to providing a & # 39; objective trading models.
Once you know how to build differences and reversals and carry trades using the statistics that set the best level of RSI, the best hours to trade and when to trade each signal should be, you start raising your trading skills to the next level.