RSIsignals
This strategy uses RSI, enter a trade when the market is oversold( below 30) and exit a trade when the market is overbought(over 70).
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This strategy uses RSI, enter a trade when the market is oversold( below 30) and exit a trade when the market is overbought(over 70).
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As any other oscillator, the indicator is not plotted on the price chart, but in a separate window below. This technical instrument consists of a single line and two levels set by default.
The vertical axis range of the indicator is set to 1 to 100 showing extremality of the current price against its previous values.
Usually standard overbought and oversold levels are 70 and 30. If the indicator’s line goes above level 70, it signals that the market is overbought and the trend may reverse downwards.
If the indicator’s line goes below level 30, it signifies that market is oversold and the trend may reverse upwards.
The reference level is 50, and it is the median value. If the indicator chart is ranging between the levels 30 and 70, the market is flat or that the current trend is smooth, steady and there is less of a likelihood for a reversal in short-term
Sometimes, overbought and oversold levels are set at 80 and 20 instead of 70 and 30. This setting is used during increased market volatility.