RSI Indicator Trading Strategy (Advanced)

The Relative Strength Index (RSI) is one of the most used indicators across stocks, cryptocurrency, & forex markets. For using it in combination with other indicators, it can be quite useful for a day trader, however, using it on its own is a bit more complex and not generally recommended among professionals.

The overbought & oversold zones on the RSI can be great exit points within trading strategies but as a trader, you shouldn't expect these zones to catch tops and bottoms directly for "sniper entries and exits" as many will claim. Using the 50 level on the RSI is much smarter as it's a way to identify bullish or bearish momentum in any given time frame.

For using the Relative Strength Index to spot divergences, the 70 & 30 overbought & oversold levels can be more useful to find profitable trading setups. Paying attention to the specifics including the settings of the RSI will help you use this trading indicator in the right context & avoid common mistakes when day trading or investing.

0:00 - 0:58 Common RSI Mistakes
0:58 - 1:53 RSI for Momentum
1:54 - 2:25 Trading RSI Divergences
2:25 - 3:08 How To Use RSI Settings
3:08 - 3:34 RSI Based Moving Average
3:34 - 3:55 Outro

All of the content on our YouTube channel is for educational purposes only. No data, content, or information provided by LuxAlgo, the Site, or the other products and services of LuxAlgo, is intended, and shall not constitute or be construed as, advice or any recommendation to buy, sell or hold a particular security or pursue any particular investment strategy.

CFTC Rule 4.41 - Hypothetical or Simulated performance results have certain limitations, unlike an actual performance record, simulated results do not represent actual trading. Also, since the trades have not been executed, the results may have under-or-over compensated for the impact, if any, of certain market factors, such as lack of liquidity. Simulated trading programs in general are also subject to the fact that they are designed with the benefit of hindsight. No representation is being made that any account will or is likely to achieve profit or losses similar to those shown.

[ctupramod]

Finally! The voice behind those videos !

[tjlawless]

Awesome, that 14 candles rule was completely new to me! Thx!

[ihabahmed]

Finally someone explained rsi properly

[favthetrader]

Just figured that the 50 is the most important level. Than I came across your video. The market don’t move until it’s crossed. I been using the MACD with the RSI and I been getting better results

[sketchykindaguy]

I love strategy videos! Keep ‘em coming please 🙏🏽

[californication]

I learn more of your videos Rather than hundreds of useless videos watched in the past months. Thank you for the selfless sharing of information.

[tcavalo]

FINALLY....SOMEBODY GETS THIS SHIT! The RSI is my main indicator, if not my only indicator, and it works wonders. People need to start experimenting with different values with this wonderful indicator.

[VSlim]

Wow, that's game changing info. Thank you

[Isabellefrederiks]

God bless you sir I have made lots of returns following your instructions sir, you are one of the best traders as people say ❤

[johndwayne]

Thanks for sharing knowledge. Keep it up!

[forexeasy]

Been using basically the same strategy but added a fake out level with it. Its unstoppable!

[nazali]

Thanks for explaining so well! I finally understood!

[ceritadulu]

14 candles that my new information bro ! good job !

[serboca]

I did not understand a part of divergence. For you... Is it a ''correct divergence'' if it is inside or outside the 14 periods?

[pi]

I use 50 at all levels with Rsi bars indicator.
Thanks to secret minset video.

[RamoncitoPascua]

What is the best RSI settings for 5mins, 15 mins and 30mins timeframe?

[prashantchaudhary]

I used yr one indicator support and resistance with breaks its great. Thank u ❤️❤️

[TheFlashmark]

For the RSi divergences for BTC what do you recommend settings?

[dipankardutta]

Please provide a detailed vedio on RSI

[yahyamuhammad]

Is there an optimal setting(s) on the Price Action Premium indicator pack that's conducive to divergences? The reversal clouds capture moves further out, once exhaustion is present, but look for something more frequent. Love all 3 premium indicators. Thanks