RSI (Relative Strength Index) is a momentum oscillator that measures the speed (velocity) and change (magnitude) of recent price movements.
THIS INDICATOR PLOTS RSI-SIGNALS and makes use of the standard calculation of RSI. The indicator has built-in flexibility that allows you to determine the oversold/overbought value and CrossOver/CrossUnder value of RSI. This enables you to fit the values to the current market characteristics.
HOW TO USE
1. Determine the oversold and overbought value depending on current market characteristics
2. Determine the CrossOver and CrossUnder value depending on current market characteristics
3. When the signal appears, consider Enter the market.
INDICATOR IN ACTION
All types of momentum oscillator indicators produce divergences and so does RSI. Divergences occur when the oscillator deviates from the trending price action. Bullish divergence is then when the trending price makes a lower low but the oscillator makes a higher low. Bearish divergence is then when the trending price makes a higher high but the oscillator makes a lower high.
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