iCharts Discussions

[rocky1980]

hi traders,
today i am sharing some rsi trade secrets.
normally we conclude rsi 70 OB and 30 OS (conventional manner)
now looking with different perspective which i will share here one can trade entry and exit on any time frame with just rsi study and the parameter disclosed.
Setup :
1) add four levels in rsi indicator ie : 80 - 60 - 40 - 20 (rsi avg 14)
2) pick any stock and follow this rsi with the following interpretation
a) in strong uptrend the rsi moves with the narrow range of 80-60 and gets over sold at 40 levels
b) in strong down trend the rsi moves in narrow range of 40 - 20 and gets oversold at 60 levels
3) for trend reversal in stocks check for rsi trendline break through in both bearish and bullish stocks.
this strategy is bit complicated to understand but once understood this could easily reap good returns on any time frame, for the above mentioned setup i am uploading some chart for quick reference.

(for additional trend recognition one can plot 34 ema)
chart 1 - tatamotors in bull trend
chart 2 tatamotors in bear trend
the strategy to trade is short @ when rsi is overbought @ 60 in down trend and cover it @ 40-20 levels
alternately in bullish trend buy when rsi is over sold @ 40 (extremely oversold) or else buy @ 60 and exit when rsi gets overbought @ 80 levels


regards
rocky1980

[rocky1980]

hi traders

here is an excellent example of the RSI in bull trend
just follow the RSI - OB and OS zones
(OB zone - 80-60 extreme 40)

buy on dips at 40 and just see the result
from 18 $ to 21 $ - this means lot in forex

regards
rocky1980

[rocky1980]

hi traders,

one can analyze the silver chart were the 34 ema works as good support - vice versa the RSI get Over Sold @ 60-50 levels and hovers at 80-60-50 levels this is the magic - if one can get this perfect - huge money waiting ahead (it works for any stock, commodity, forex)

the points are marked in red vertical line for reference


regards
rocky1980