The most basic RSI application is to use it to identify areas that are potentially overbought or oversold. Movements above 70 are interpreted as indicating overbought conditions; conversely, movements under 30 reflect oversold conditions. The level of 50 represents neutral market momentum and corresponds with the center line in other oscillators such as MACD.
Wilder outlines another important indicator of a potential price reversal called failure swings. A bullish failure swing forms when RSI moves below 30, rises back above 30 and pulls back again, but holds above the 30 level. The failure swing is complete when the RSI breaks its recent high; this breakout is interpreted as a bullish signal.
Related Post:
- Barry Norman Explains Fibonacci Retracements for Forex and Cryptocurrency
- Cardano: Showing Relative Strength
- OMG!! MITT HYBRID-LAG FÖR 2 MILJONER COINS!! FIFA 19 Ultimate Team på Svenska
- [VR추천]스팀의 강력한 한 수 벨브 인덱스VR (Valve index//steam index)4K
- Make Money Fast in Forex Trading – How to Become a Forex Chartist and Make Bigger Profits
- Bitcoin, Litecoin & Bitcoin Cash relative overperformance
- XRP To $5 EOY? – XRP Up 500% Relative to BTC This Year! + New Exchanges – Huge XRP Update!
- Stratis Technical Analysis (STRAT/BTC) : Ugly is a Relative Term… [02.25.2019]
- Has bitcoin become a relative safe haven amid market volatility?
- Forex Automator Pro Review – Can You Really Make Forex Trading Profits With It?
