is the most common indicator in the Forex World. This is the only indicator that draws the best picture of the market It shows overbought and oversold. The RSI is a momentum oscillator indicator. It describes the momentum of the speed and gain of a specific market, RSI indicator is usually plotted from 0 to 100. When RSI is below 30 the Forex expert consider the pair is oversold then a person should open the BUY position or go long with the said pair. Similarly if RSI is above 80 the the said pair is overbought and we should open the sell position or go short with the said pair. (You will get profit in case of market reversal).
Currency Trading is so simple as 123:
There is no indicator in the Forex world better than RSI that doesn’t repaint (redraw itself) you will get the same chart on the day over day with the same setting and it will not redraw itself. The 50 level is the intermediate level for the RSI.
RSI Trading Strategy
How RSI helps in the Opening Positions:
RSI 14 period is the slow RSI that will show you the relative strength index of the 14 period. However RSI of period 4 or period 5 will give you quick signals for bought and sold.
For better results you can draw two RSI on the same chart. I apply a 5 period RSI (RSI 5) over the default 14 period RSI (RSI 14) and watch for crossovers.