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korazon

How to use RSI indicator in trading BTC/USD

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This is the first tutorial I am creating here in the forum. And I hope people will eventually learn from this. I don't really claim to be an expert in trading but I have quite a good experience somehow I believe I can make money if I continue to trade so. Anyway so this is how to use the Relative Strength Index (RSI) in the charts you are using.

 

 

rsi14.png.c305ee256314df0ff26a8197eb3c4900.png

 

This is a chart in tradingview which I use to look at the market. Lets just focus for now in the RSI below this chart which in the rightside is where you can see numbers 20,40,60 and 80. Actually, this is 0-100. and you can see there are two broken lines(----) which is in the 70 and 30. The two broken lines indicate overbought and oversold, I'm sure you guys already understand what overbough and oversold as it is what it is.

 

I circled RED to the ones where the market hits the overbought level and oversold level to which if the market is in such condition, something must be decided. 

So when the RSI chart touches the 70 level, it means that BTC is now overbought and it may drop anytime soon. and This goes as well to the level 30 which indicates that BTC is oversold and traders might just starts to buy back the BTC they dumped.

 

By the way this is for the starters only but its already a good fighting chance for you to learn and start experimenting in trading. Would love to hear something you can share upon suing the RSI or what ever indicators you use along with it.

 

Update: Using Fibonacci in Trading

 

 

 

 

Edited by korazon
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How to Trade using RSI Using the Fibonacci in Trading

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rsi14-2.png.0b4164936a01c9feb3cecbf48fdef075.png

 

Current price right now is $9770 and it may take few days to a week til we see the RSI will show us the market is oversold. and when that happens I guess the price will spike up again to more than $10K and according to the Fibonacci, we may finally break the $10500 resistance level which the next will be the $11500. But this is if the market really will be going upwards.

 

 

 

 

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How to Trade using RSI Using the Fibonacci in Trading

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Price of BTC might just dip to $8500-9K before going up again. This is just an speculation base on the RSI and fibonacci indicator I see because there are support in this areas. 

 

I would probably dump my BTC today but put a buy order at about $9000 if I don't have time to watch the chart. I don't setup auto while trading since it felt like I'm not in control though.

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How to Trade using RSI Using the Fibonacci in Trading

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On 2/23/2020 at 9:39 PM, korazon said:

This is the first tutorial I am creating here in the forum. And I hope people will eventually learn from this. I don't really claim to be an expert in trading but I have quite a good experience somehow I believe I can make money if I continue to trade so. Anyway so this is how to use the Relative Strength Index (RSI) in the charts you are using.

Wow nice! Thank you for sharing these informations. I experience some difficulties to understand trading indicators and improve my trading skills to make more profits. I will read your topic several times. (and bookmark it!)

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23 hours ago, JoeDavid said:

This indicators really make a whole lot of difference that hasn't really made alot of difference that we all never thought of and we are all focused to make a difference 

 

I however have only learn few of these indicators. there are lot more to learn from them and as much as i want to learn the ones that are very useful for trading, i can only grasp the ones that are easy to understand. 

 

its even hard for me to learn what  MAs can do since there are very limited explanations that authors are relating it to crypto trading.

 

 

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How to Trade using RSI Using the Fibonacci in Trading

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14 hours ago, Mahady 10 said:

I am the newcommer in btc world....i do not know the answer of this question do you know? Please tell me about it..i am improving my knowledge as well as my skill through its....

You mean the question on how to use the RSI?

 

Well its not directly answered above actually but its demonstrated as to determined whether the market is overbought or oversold. Determining which will allow you to decide whether to buy or sell.  

 

This is the setting of this RSI that I'm using here.

 

 

rsi-setting.png.3146d633658c9d76750ef93789bc303e.png

 

rsi-set.png.e3c0a19abd784ca69412aef8fa318439.png

 

 

 

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How to Trade using RSI Using the Fibonacci in Trading

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19 minutes ago, UpretiKing said:

RSI indicator are just pretty simple to understand. They are colorful bar graphs that goes ups and downs and the prices raises or drops down simultaneously. Its great because it helps to understand the market in an easy way.

Basically its just the levels in 70 and 30 that you need to see in RSI but this will of course need another indicator to confirm the signals it gives to you. MaCD is effective in Divergence.

 

 

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How to Trade using RSI Using the Fibonacci in Trading

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Thanks for sharing useful and interesting information. Many new customers will help your topic. Can you share information about candles?

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On 2/28/2020 at 10:48 PM, KURTAULI said:

Thanks for sharing useful and interesting information. Many new customers will help your topic. Can you share information about candles?

I have no experience with candle sticks though. Its really hard for me to foresee where the price and trend could go by looking at the charts with just candlesticks. I have to play with indicators and MAs.

 

one candle sticks has worth of information as they say. which is why it has some sort of form that differs from each when it opens and close. but i'm not every aware of it to be honest. 

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How to Trade using RSI Using the Fibonacci in Trading

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51 minutes ago, Wazeery123 said:

Most traders use a period setting of 14, which means closing price data from the past 14 periods (15m, 30m, 1h, 4h, etc) will be used to calculate RSI. RSI oscillates between 0 and 100. If an asset's RSI value drops below 30, it is considered oversold, while a RSI higher than 70 indicates overbought conditions.

I wouldn't recommend using RSI on 15minute, 30 minute, 1hr and 4 hour chart though. Its going to be risky unless you know very well how to scalp in the market.  When RSI says its oversold in the 1 hour or the 4 hour chart, you need to verify how real the information is and that means looking into the daily chart and weekly to confirm the market is in the uptrend.

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How to Trade using RSI Using the Fibonacci in Trading

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I can not believe these guys are commenting here which doesn't have substance to it. There is nothing to what you guys are saying. You are milking the yobit everyday but doesn't even at least move a bit of your braincells.

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How to Trade using RSI Using the Fibonacci in Trading

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On 2/23/2020 at 9:39 PM, korazon said:

This is the first tutorial I am creating here in the forum. And I hope people will eventually learn from this. I don't really claim to be an expert in trading but I have quite a good experience somehow I believe I can make money if I continue to trade so. Anyway so this is how to use the Relative Strength Index (RSI) in the charts you are using.

 

 

rsi14.png.c305ee256314df0ff26a8197eb3c4900.png

 

This is a chart in tradingview which I use to look at the market. Lets just focus for now in the RSI below this chart which in the rightside is where you can see numbers 20,40,60 and 80. Actually, this is 0-100. and you can see there are two broken lines(----) which is in the 70 and 30. The two broken lines indicate overbought and oversold, I'm sure you guys already understand what overbough and oversold as it is what it is.

 

I circled RED to the ones where the market hits the overbought level and oversold level to which if the market is in such condition, something must be decided. 

So when the RSI chart touches the 70 level, it means that BTC is now overbought and it may drop anytime soon. and This goes as well to the level 30 which indicates that BTC is oversold and traders might just starts to buy back the BTC they dumped.

 

By the way this is for the starters only but its already a good fighting chance for you to learn and start experimenting in trading. Would love to hear something you can share upon suing the RSI or what ever indicators you use along with it.

 

 

 

 

 

 

So the RSI it's only between 30 oversold and 70 overbought that's really very clear Thanks brother for explain that it's really helpful to analyze exactly the chart  

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Thank you very much for the clear review that provided access to many investors. This certainly affects what is really expensive in order to trade cryptocurrency. 

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The market looks to me like its overbought already but its not going to have make a bounce continuously. For all we know the all markets are crashing down, stock market had already been plummeting and crypto as well. 

 

Not the kind of market we expect when we are approaching the BTC halving.

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How to Trade using RSI Using the Fibonacci in Trading

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thank you for sharing us this information..for me i do not use any indicator at all i do not feel that the indicators will make you know the price or the next move.

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RSI gives a good idea most of the times, although in a persistent bull or bear market it doesn't mean much and you might end up selling at what you think is a top, while the RSI can take a break for a few days and keep going up.

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On 4/10/2020 at 3:15 AM, omaralirajbd said:

Dear friend you share RSI indicator information that I read see his activities. I think indicator help some time but trading can not depend any indicator. Thanks for sharing this RSI indicator features.

What do you use to trade?

 

Some of us are actually using more than 3 indicators just to make sure the signal they get are real and confirmed with many indicators they installed to their charts. Crypto news may be a factor to drive price movement but its not really that huge unless its sensationalized by media.

 

 

Edited by korazon
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How to Trade using RSI Using the Fibonacci in Trading

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For Fibonacci. I have no idea about the history of fibonacci, I just read and learned how to use from reading some traders in FOREX and then apply it to my trading. Most of the time, traders jsut draw a line to identify which are the support and resistance. But in MT4 (forex trading software) the fibo can readily identify these support and resistance by drawing the fibo from the bottom up to its peak.

 

Upon playing with tradingview, I found the fibonacci indicator that can do the same like identifying the support and resistance. Check the image below.

 

fibolines.png.c5fcabc67776a6164c2b4feae7c3ba0e.png

 

the numbers 1-7 in green are potentially the support and resistance here. if you look closely, we are approaching the resistance number 3 that the pump had not break yet. 3 and 2 were previously support levels but were broken during the liquidity crisis.

 

To use fibonacci in trading is that you look just where the support and resistance are because normally its where the price hits the peak and drop again. Unless a breakout will happen so determining whether there will break out or not depends to another indicator's signal like the RSI.

 

When the market just keep the seesaw, you will probably earn more with fibonacci that you can just keep buying and selling in BTC/USDT pair. 

 

 

 

NOTE: I'm not a PRO. I learned all these by my experience only. there are more knowledgeable traders who can actually teach better. Don't take this tutorial as a financial advice.

 

 

 

Edited by korazon
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How to Trade using RSI Using the Fibonacci in Trading

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Thank you for the effort in explaining the indicator, yes I also agree with you. This indicator is very important in analyzing the price of any currency and knowing the buy and sell saturation as well, but sometimes it is not enough alone.

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On 4/15/2020 at 12:04 PM, Sachin Jadaun said:

Actually, Some of us are actually using more than 3 indicators just to make sure the signal they get are real and confirmed with many indicators they installed to their charts, thank you.

that means you have the paid subscription of tradingview.  not everyone will do that unless they are really that good and knows how to make it work for them. so congrats

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How to Trade using RSI Using the Fibonacci in Trading

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On 4/16/2020 at 10:48 PM, Kapil Koirala said:

I think RSI helps much in finding the entry and exit point for a trade but I have never used it. I only use simple moving averages for some ideas and look some signals from the telegram channels I have joined which are really helpful.

Not sure how you use the MA but i stay with the simple moving average like 20, 50 and 200 moving averages. Of course the numbers represents how many candles upon tracking the price change and it means the 20 MA reacts faster than the 200MA.  but the way I use 3 of them is to watch out if the market moves away from the moving averages. If the market doesn't move back and forth within the 3 MAs, it means its a good time to enter a position because its usually retraces back. What I hate about MAs is that its makes the chart messy at some point so I might as well just reduce its opacity.

 

May I ask which channel? I've seen them and most of them ask membership fee. 

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How to Trade using RSI Using the Fibonacci in Trading

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On 4/9/2020 at 7:06 AM, GanDuba said:

No body is an expert or too professional in trading because to foresee is not easy, your article is great

 Trading should be done with more seriousness and with patient. 

We should all the time use those indicator and time by time we can learn more about trading and use them often because it's help to determine the price and where is going 

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20 hours ago, scorpiali said:

We should all the time use those indicator and time by time we can learn more about trading and use them often because it's help to determine the price and where is going 

indicators are made to predict where the market is going. there are lots of it. though it needs a lot of experience to learn how to use the indicators. i'm no expert as well so i only knew few of these hundreds of indicators.

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How to Trade using RSI Using the Fibonacci in Trading

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6 hours ago, korazon said:

indicators are made to predict where the market is going. there are lots of it. though it needs a lot of experience to learn how to use the indicators. i'm no expert as well so i only knew few of these hundreds of indicators.

Yes there is a lot and we need to know and learn them all to be professional in trading and try to predict the next candle, but the majority are use them wrong and predict a bad market price  

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