The Relative Strength Index (RSI) is one of the most used indicators across stocks, cryptocurrency, & forex markets. For using it in combination with other indicators, it can be quite useful for a day trader, however, using it on its own is a bit more complex and not generally recommended among professionals.
The overbought & oversold zones on the RSI can be great exit points within trading strategies but as a trader, you shouldn't expect these zones to catch tops and bottoms directly for "sniper entries and exits" as many will claim. Using the 50 level on the RSI is much smarter as it's a way to identify bullish or bearish momentum in any given time frame.
For using the Relative Strength Index to spot divergences, the 70 & 30 overbought & oversold levels can be more useful to find profitable trading setups. Paying attention to the specifics including the settings of the RSI will help you use this trading indicator in the right context & avoid common mistakes when day trading or investing.
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0:00 - 0:58 Common RSI Mistakes
0:58 - 1:53 RSI for Momentum
1:54 - 2:25 Trading RSI Divergences
2:25 - 3:08 How To Use RSI Settings
3:08 - 3:34 RSI Based Moving Average
3:34 - 3:55 Outro
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