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Thread: RSI Explanation

  1. #11

  2. #12
    RSI= Relative strength Index, provides you an idea on whether a currency is overbought or not and you can use this to find out your entrance and exit places and so on. .

  3. #13
    Using RSI for overbought/oversold signs is very undependable in a trending market. That is another way to utilize it (http://www.tradersbulletin.co.uk/?p=512) I find works best for me.

  4. #14

  5. #15
    Thanks for that document, it seems like really interesting stuff. I'm looking forward to analyzing it.

  6. #16
    I use RSI Just on 4h charts to Appear for divergence

  7. #17
    Quote Originally Posted by ;
    Hi Guys!

    I am new to FX and also have a ton of questions as you can imagine.

    I have a query regarding RSI actually. I know a lot of traders are referring to it. What is it used for? In the type of egy can it be applicable? Can it be anything to do with momentum?

    Any explanation would be appreciated.

    Thanks
    RSI is the relative strength index. The egy is your decision. Basically what it shows is in case the currency (or commodity or stock) is oversold or overbought. Basically it tells you that if a currency is overbought, then folks will begin selling. If it's oversold, people will begin buying. Basically it shows when momentum varies.

    Instance: The EUR/USD is composed and abruptly jumps 50-100 pips. The RSI is going to show overbought basically implying that the currency isn't worth that total 50-100 pips and that people will begin selling off. Not true, but that's what it's available for.

    EDIT: I would also suggest checking out investopedia for a more comprehensive explanation.

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