The Best Technical Indicator

Relative Strength Index

The overall strength list (RSI) is a specialized marker utilized in the investigation of monetary business sectors. It is expected to diagram the current and verifiable strength or shortcoming of a stock or market in light of the end costs of a new exchanging period. The pointer ought not be mistaken for relative strength.

How to trade with RSI Indicator:

Basic Configuration

The RSI is introduced on a diagram below or beneath the value outline. The pointer has an upper line, regularly at 70, a lower line at 30, and a ran mid-line at 50. More out of control suggested a smoothing time of 14 (see outstanding smoothing, for example α = 1/14 or N = 14).

In above diagram it is considered overbought when the value of RSI crossing the 70 line and over sold when the line crossing below to 30 line means it generate sell signal when it up to 70 line and buy signals when it below to 30 line.

Here is the best setting, choose in setting 60 and 40 in style like below

So chart will look like that

So its a magical trade strategy Buy when RSI line cross above the 60 line and Sell when it cross below the 40 line.

Here are one more example