trading Relative strength index [RSI] indicator

[Babubu609 0]

As I have said earlier from my previous topic that discuss on how to calculate the market cap of a coin. It is very ascertain and unfortunate to give a little explanation without going deep into the aspect. Right now I am going to discuss about the relative strength index[RSI] indicator. If you haven't read from my previous topic you can read it by clicking on this Click here.

 

This type of knowledge is much needed to many members that are just into the cryptoworld. They need to know how to do some jobs online like making trade and to do that they need to know the market cap of every coin. To know about the terms trading there are many guidelines you need to know about the types of trading and also what a trading is this can be found here.

So it is also good to learn more about the gas fee here,and practice some transactions and on how to set your transactions to avoid paying huge amounts of fee for a little amount of funds to be transferred.

Now back into topic of discussion we are looking back into relative strength index.  

The market cap is a good option to predicts how much valuable cryptocurrency was, we all know that there are several other factors that we must all take into account. If we are looking into something good to invest then you need to keep in mind that market cap is one of the most important thing/ tool you need to study . To select a coin you have to make a thoroughly research on that projects that you are interested to invest in it. Therefore you need to ask around by research to get a full knowledge. Knowing the coin market cap will just get you so far.

 

Relative strength index

 

RSI is a good indicator which is designed to indicate high purchased and numbers of sold out in the market . The relative strength index [RSI] values was range between {0} which is also reffered to the most "soldout" and we have the range [100] representing the most "high purchased" status of that particular coin. The relative strength indicator as usual program on preset is to calculate about 14 periods. The more the decrease in the periods of the indicator, the more volatile it becomes. This is a formula that will help you in calculating the RSI is as follows:

RSI = 100 - (100/1 + RS) where:

 

RS = (sum of the upward closing values / n) / (sum of the downward closing values / n)

 

n = The number of periods

 

This can also be more explain in detail on how to differentiate three levels of significance in the RSI’s graph.

 

* Level one of significance: We have the high purchased/overbought level which is exactly when the RSI exceeds the value of 70.

 

* Second level of significance: Here this is a situation were the oversold level of RSI’s value drops below 30, and the centerline was at 50.

 

Note: whenever If our overbought limit is exceeded we shall receive a signal to sell, and when ever the oversold level is exceeded also receive asignal to buy, and try to understand that this depends on the direction that it follows and to when it breaks the centerline were a full confirmation of an upward or a downward trend.

 

This is just a short a little knowledge I can pass to you about the Relative strength index[RSI] indicator.

 

There very soon I will discuss about;

 

* Support and resistance

 

* Price rising from support

 

 

* Price falling from support

 

* Support and resistance eqaul to market emotions

 

If you can accumulate this you can know at least 60%-70% knowledge about trading.

 

Happy trading to you all..thank you 🙏 for taking your time 

 

 

Edited October 4, 2020 by Babubu609

[Ndayebo8 0]

Wow! That's very unique your post is very worthy. I have read some many your topic they are very useful. Just as you say if we can practice good we shall enjoy trading and always win.

[Babubu609 0]

On 10/5/2020 at 7:34 AM, Ndayebo8 said:

Just as you say if we can practice good we shall enjoy trading and always win.

You are welcome to cryptotalk mate, although you are familiar to many members here but it has been long I read your posts this days. Very glad to see you again. Thank you for understanding the topic is all about.

[khan22 3478]

Through indicator market analysing is the easiest way and through this we can make good money becasue the market analysing is easy for us if we get the good indicator. RSI is a good indicators but i am not use the i just use the zigzag indicator.

[Syedbesharat 5423]

Using indicator is good for trades but rallying on  indicators  are bad .Where the capabilities of traders  gone down and he become lazy in trading. It's good choice  to use indicator for analysis for making plan. Their are various indicators in market but mostly does give you perfect result. Always work with studies not totally  at indicators  .

[Babubu609 0]

On 10/30/2020 at 8:09 PM, Syedbesharat said:

Their are various indicators in market but mostly does give you perfect result. Always work with studies not totally  at indicators

Well is very good advice for one to study about the indicators especially the RSI (relative strength index indicator) for accurate analysis. Most experts like to use this indicator to calculate the market. After that you can also include the candlesticks for fast results in other to grab opportunity quickly.

[iloveyobit 6599]

There are several indicators that help in day trading, including the RSI indicator, which is not a complicated indicator, but its professionalism requires time and in-depth research in order to fully understand it, but according to my opinion, professionalism the rsi means that you will know the direction of the market almost completely.

[Mella 3680]

I'm use the RSI some times and it is gives very good advice, but I'm most use it to known when to buy after a drop in the price is happens and not when to sell. This is because in the Bitcoin there can be reach very high the RSI for a long time stay there and price go higher a lot from what the RSI says is overbought. I am think it is because of the limited supply of the asset.

[Shaza Ahmad 1682]

The Relative Strength Index is one of the most important indicators that determine the direction of the market at a certain time. It cannot be said that relying on this indicator leads to a 100% correct deal, but it must be taken into account.

 

[yonkii 3205]

On 10/4/2020 at 7:02 PM, Babubu609 said:

RSI = 100 - (100/1 + RS) where:

 

RS = (sum of the upward closing values / n) / (sum of the downward closing values / n)

 

n = The number of periods

Thanks for explaining the equation, I have read a few things about RSI but I never knew this. As I read this is used by traders to find oversold and overbought levels for an asset and they have the 70 as number for overbought. Bitcoin today is above 90 so it is probably super overbought and a correction may happen. But this doesn't mean it can't go higher later, as the number of downward closing values may be more than the upward but it can still be very small drop in the price, bring the RSI back to bellow 70 and jump again with huge candles up.

This equation actually made everything clear to me.

[Amr90 1064]

The Relative Strength Index is one of the most widely used indicators.
Although many use it only to saturate buying and selling and determining the next direction in the short term,
But there are many uses like divergence and trend-following.
I use the indicator very often, but I do not rely on it completely without the rest of the market variables.

[Sykkuno 2887]

The RSI doesn't mean a lot. I have seen traders having rsi as most important but the more experienced don't look at this indicator. Yes it can work sometimes for a lot of reasons but it is like a 50-50 chance so it shouldn't be any reason to trade according to RSI alone. It could be a factor to decide among many others too. You can first read some averages and when there is a possible change of trend then RSI can be looked upon too as a last confirmation of that.

[cryptovlek 2597]

On 10/4/2020 at 7:02 PM, Babubu609 said:

Level one of significance: We have the high purchased/overbought level which is exactly when the RSI exceeds the value of 70.

But RSI today is very high for Bitcoin, above 70 for months. So was it dangerous buying at 15k? Prices didn't drop at all and doubled instead. RSI is above 90, however it can correct from there for some weeks or months. There was a recent altcoin pump too, so perhaps we reached a top for the time being? Many indicators seem to be on maximum and there was a recent hype in TV and everywhere. Some people that didn't know about Bitcoin starting talking recently, this could be the top for now. Price dropped from 34k to 32k so we can have a healthy correction and RSI can drop bellow 70 but I am expecting Bitcoin to have a great year and many times reach 90.

[kryptonick 2659]

On 10/4/2020 at 7:02 PM, Babubu609 said:

RS = (sum of the upward closing values / n) / (sum of the downward closing values / n)

For this alone I think it doesn't matter too much and that RSI is just a statistic tool that doesn't point at anything. It isn't giving any data on what is oversold or overbought. In fact this means nothing. If there is an endless influx of fiat money, what will be the price where an asset will stop? It won't be, this is why we see 100% rise in asset prices between one week time.

[Oliver james 0]

Cryptocurrency is one of the best currency in all over the world which is used as a worldwide project and there are several people attached to this side from all over the world and that much and more profitable and from this real base and think program but most of them are very conscious to join different online earning site they don't know how to work on it and how to regain a better operation from this site and the project also provides a facility you want to become a good trader through this site because if you invest some money on this side and an adaptor profit and you will get a good repute through this site and you will tame in the whole market and become a good trader.