This concept might look intimidating and radical at first.
You need a tool that can point you to what’s happening in the broader context. Strategy #3: RSI Divergence + CandlesticksĬandlestick patterns alone are never sufficient to call a market top or bottom.
It looks for support and resistance zones to confirm oversold and overbought signals respectively. This trading method works well for the patient trader. If you think that trading is like hunting, you will agree that patience is a virtue. A modified approach that uses the RSI2 for determining the market bias as well.Explanation of the original RSI2 strategy by ChartSchool.This unconventional lookback period turns the RSI into an incredible short-term timing tool. The 2-period RSI is the brainchild of Larry Connors. RSI with Support & Resistance Zone For Day Trading.However, by examining these diverse RSI trading methods, you will gain helpful insights into J. Before you jump in to explore the trading strategies below, make sure you understand the basics of the RSI indicator.Īlso, bear in mind that these trading strategies are not perfect and are unlikely to be profitable when traded mechanically. Here you will find seven RSI trading strategies that showcase the different facets of this powerful indicator. Each method produces a unique tool that enables diverse strategies. You can vary its lookback period, combine it with different trading tools, look for divergences, and even draw trend lines on it. Welles Wilder is a popular and versatile trading indicator. The Relative Strength Index (RSI) designed by J.