Importance of ""Relative Strength Index Indicator"" in forex trading...

Assalamu Alaikum! Dear seniers and juniers traders, umeed ha k ap sab kheriat sa hon ga aur forex market sa daily basis per ak acha gain le raha hon ga.

Importance of ""Indicators"" in forex trading:

Forex trading man trader currency pairs aur commodities ki price movements ko smajhna k liye price chart ko read kerta ha. Q k price chart patterns man changes, momentum aur price k trend man change ko accuracy k sath identify kerta ha. Indicators currency pairs aur commodities k price chart man price ki movement ko track ker k trade entry aur trade exit ko accuracy k sath identify kerta han. Trader forex trading k doran currency pairs aur commodities k price chart man indicator ko chart k bottom per ya chart k ander place kerta ha. Forex trading man trader currency pair ya commodity ko buy/sell kerna k liye ""Indicators"" per depend kerta ha. Aj man apka sath ""Relative Strength Index Indicator"" per trading k related apna knowledge share kerta hun.

Introduction:

Forex trading man traders k dermiyan sab sa zayada use hona wala aur effective indicators man sa Relative Strength Index Indicator ha. Isko shortly ""RSI indicator"" kehta han. RSI Indicator ak Lagging Indicator ha.

History:

Relative Strength Index Indicator ko J. Welles Wilder Jr. na develope kia ha jisko unhon na 1978 man apni book ""New Concept of Technical Trading System"" man introduce kia tha.

Relative Strength Index Indicator:

RSI Indicator market price ki current price ko past prices k sath compare ker k currency pairs aur commodities ki price k strength man strong/weak ko market price k Overbought/Oversold ker k batata ha. RSI Indicator oscillator ki terha information ko graph per display kerta ha. Is graph man 0 sa 100 tak levels hota ha, jis man RSI line (moving average) move kerti ha. RSI Indicator man by default 14 past period ki prices ka average liya jata ha jisko trader apni choice k motabiq b adjust kerta ha. Jab RSI line 30 k level sa nicha ho to isko particular currency pair ya commodity ki price k oversold hona ka batati ha aur jab RSI line 70 level sa above hoti ha to ye particular currency pair ya commodity ki Overbought k batata ha.

Trading with ""Relative Strength Index Indicator"":

Relative Strength Index Indicator ko forex trading k doran market k new trend ko identify kerna k liye use kiya jata ha. Jisko trader ak trade signal k tor per b use kerta han. RSI Indicator market price k trend man change ko Overbought aur oversold ker k batata ha.

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Market Price Overbought Condition:

Jab RSI Indicator ki line 70 k level sa above ho to isko normally particular currency pair ya commodity ki price k Overbought k signal k tor use kiya jata ha. Is condition man particular currency pair ya commodity ki price k mazeed oper jana k chances bhot kam hota ha aur price kisi b waqt tazi sa fall ker sakti ha. Is liye is condition man trader ko ""Buy ki Opportunity"" ko totally ignor kerna chaheye aur jasa ko pattern ya sell ka signal milta ha to sell ki trade active kara aur stoploss aur take profit ko support and resistance levels per place kara.

Market Price Oversold Condition:

Jab RSI Indicator ki line jab 30 k level sa nicha ho to isko particular currency pair ya commodity k oversold ka signal deta ha. Is condition man particular currency pair ya commodity ki price ka mazeed jana k chance bhot kam hota han aur price kisi b waqt tazi sa oper ja sakti ha aur market price man long bullish trend start ho sakta ha. Is liye trader ko ""Sell ki Opportunity"" ko totally ignor kerna chaheye aur jasa koi ""buy ka signal"" mila ya RSI line jab 30 k level ko cross above kara to tab trader ko ""buy ki trade"" active kerni chaheye aur Stoploss aur Take Profit ko support and resistance levels k motabiq place karen.

Re: Importance of ""Relative Strength Index Indicator"" in forex trading...

dear friend, Relative Strength index indicator aik momentum oscillator ha jo aik line ki surat ma graph par show kia jata ha ye price moment ki changes aur speed ko measure karta ha, is ko J. Welles Wilder na develop kia tha, ye aik kafi popular use honay wala indicator ha, is ki help sa hm trend ko b identify kar saktay hain,

Relative Strength Index and its calculation:




ye indicator hmain market ma oversold aur overbought conditions ka idea daita ha, RSI ko hm 2 steps ma calculate kartay hain, pehlay relative strength maloom kia jata ha, 2nd step ma hm relative strength ko 0 sa 100 ki range tk bind kadtay hain, rsi oscillator 0 sa 100 k darmian oscillate karta ha, jb is ki value 70 sa above hoti ha to ye overbought ka signal hota ha aur jb iski value 30 sa fall karti ha to ye oversold ki indication daita ha, is k sath sath jb RSI ki value 30 sa above chali jati ha to ye bullish reversal ki prediction daita ha aur jb value 70 sa above jay to ye bearish reversal ko show karta ha,

Interpretaion of buy and sell signals through RSI:





positive aur negative divergence ki waja sa buy aur sell k signals generate hotay hain, jb RSI center line (50) sa below move karti ha to ye bullish signal ki confirmation hoti ha aur jb RSI center line k above move karti ha to ye bearish moment ki indication hoti ha, RSI ki nature ki waja sa ye price moment k directly proportion nhi hoti, is tarah price moment aur RSI k darmian divergence produce ho jati ha, flat aur sideways markets ma b RSI signal generate kar sakta ha lakin is ma price ka momentum low ho jata ha

Re: Importance of ""Relative Strength Index Indicator"" in forex trading...

Dear all members RSI bht important aur bht faida mand indicator hayi hum ye jante hain Relative Strength index (RSI) indicator forex market mein technical analysis k liye use hota hai iska bahut zyada use hota hai ye aik fast kisam ka indicator hai tezzi se work karta hota hai jo market ma pairs ki prices ma recent changes ko measure karta hai hum ye dekhte hain aur un mei overbought ya oversold conditions ka andaza lagata hai hum fayda le sakte hain.

RSI working method:

RSI indicator aap har kisam k time frame k leay use hota hai bahut achi divergence k liye bhi use hota hai is k scales ma 0 sa 100 tak values hoti hain jis ma high scales 70 aur low scales 30 tak marked hotay hain ye indicator insert kar k aap dekh sakte hain shorter ya longer timeframes bari bari shorter or longer outlooks k liye use hote hai kafi zyada use hota hai is mei ziada tar high aur low levels 80 20 ya 90-10 hotey hain ye hum dekh sakte hain aur ye strong momentum ko show kartay hai, trade me achi entry k liay aur proper time par exit k liay humain rsi k mutabik chalna chahiye jaise indicator mein show ho raha ho.

Overbought situation:

Dear members hume iske patterns samajh honi chahiye forex trading market mein jab aap Relative Strength Index Indicator ko study karte hain hum fida hai dekhna chahiye tu overbought situation aap kay liye helpful information provide kr raha hota hai hume analyse mein pata lagta hai ya wo specific level hota hai, jismein prices bahut zyda higher position per hoti hain ye bat mind mein hi rakho es position main aapko hamesha selling karna hoti hai. Is level ko aap level 70 kaha jata hai yahi overbought ka system hai.

Oversold situation:

Forex trading market mein jab aap Relative Strength Index Indicator ko learn karte hain hume har cheez detail se dekhni chahiye tu oversold situation ko consider krty hain tu ya bottom level aik aisa level hota hai aap yahan pe hamesha support find karo ge eslevel ko aap level 30 kay name sa bhi janty hain jab indicator aapko kisi bhi tarah se analysis mein bare timeframe main RSI less than 30 show karta hai ye mind mein rakho us time per aap entry lay saktay hain.

Trading with RSI:

Dear members RSI indicator se hum jante hain best trade hoti hai jab ap Relative Strength Index Indicator ko study kar k working karty hain hume samajh honi chahiye to es mein oversold situation mein buying entries le na hoti hai hum jante hain or overbought situation mein aapko selling entries mil sakti hai ess ki basis pr decision making Process complete karna bahut easy ho jata hai RSI k sath trading best hoti hai es indicator ko use kr k hum profitable trading kar sakty hain.