BindalFX 4x4u.net        Online Trading    
 

RSI

RSI (relative strength index) is a single line indicator and its main use in a mechanical sense is when it reaches overbought or oversold.

 

RSI overbought/oversold zone – a trigger that asks RSI to reach overbought/oversold

Example for an income trader:

  • If trend is bullish when RSI (5) crosses below 30 look for a trade event
  • If trend is bearish when RSI (5) crosses above 70 look for a trade event

Example for a growth trader:

  • If trend is bullish when RSI (20) crosses below 30 look for a trade event
  • If trend is bearish when RSI (20) crosses above 70 look for a trade event

Other oscillators you may want to check out are ‘William’s %R’ and ‘Rate of Change’.

 

 

Move on to Step 4 - Module 2 > Trading System Builder Tool Kit: Trading Rules > Trigger: Bollinger Bands

 

  

____Step_1____
Welcome
Binding Agreement
____Step_2____
Your Trading Business
□ Trading Styles
□ Objectives
□ Business Resources
□ Business Assets & Liabilities
____Step_3____
Market Basics
□ Stocks
□ Forex
□ Futures
□ Options
□ CFDs
Trading Basics
□ Reading Price Charts
□ Types of Markets
□ Types of Trading
□ Placing Orders
____Step_4____
Charting Basics
□ Pivot Points
□ Trend Points
□ Isolation Points
□ Real Bars
□ Summary & Test
□ Answers
Trading System Builder Tool Kit
□ Trading Rules
□ -1 Trend
□ _Moving Averages
□ _MACD
□ _Trend Lines & Channels
□ -2 Trigger
□ _Moving Averages
□ _MACD
□ _Stochastic
□ _RSI
□ _Bollinger Bands
□ _Fibonacci
□ _Support & Resistance
□ _Trend Lines
□ _Divergence
□ _Volume
□ _Price Bar Patterns
□ _Breakouts
□ _Which Triggers To Use
□ -3 Trade
□ -4 Terminate
□ _Initial Stop Loss
□ _Exit Strategy
□ -Filters
____Step_5____
Risk Management
Back Testing & Evaluation
Running The Business
Additional Tools & Resources
Resources