How to trade with ""Relative Strength Index Indicator"" in forex trading?

Assalamu Alaikum! Dear seniers and juniers, umeed ha k ap sab kheriat sa hon ga aur forex market sa daily basis per ak acha gain le raha hon ga. Dear traders forex trading ak risky business ha, is man traders ko bhot losses hota han is liye forex trading ko acha sa seekh ker karen.

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. Technical Indicators currency pairs aur commodities k price chart man market price ko track kerna k liye use hona wala most important technical tool ha. Indicators ko trader market price chart man place kerta ha aur indicators matket price ko read kerta ha aur market price chart accurate trade entry aur trade exit levels ko identify kerta ha. Isliye forex trading man trader kisi b currency pair ya commodity ko buy/sell kerna k indicators per depend kerta ha. Aj man apka sath ""Relative Strength Index Indicator"" per trading k related apna knowledge share kerta hun.

Relative Strength Index Indicator:

Related Strength Index Indicator ak ""momentum indicator"" jo market price ki current aur past prices k sath compare ker k market price k ""overbought aur oversold"" k bara man btata ha. Ye indicator Divergence per b trading ka signal ka signal deti ha.

Relative Strength Index Indicator ak oscillator ha jo price man change k signal ko ak graph per represent kerti ha, jis man 0 sa 100 levels hota han. Jab price line in levels k dermiyan move kerti ha to different trade signals deti ha.

Overbought Condition of Market:

Jab price line 70 k level sa above ho to isko us particular currency pair k price k overbought ka batata ha. Is condition man trader ko buy ki opportunity ko avoid kerna chaheye q k is condition man price ka mazeed oper jana ka chance bhot less hota ha aur kisi b movement price fall ker sakti ha. Is liye Overbought condition man sirf trader ko selling Opportunity ko avail kerna chaheye.

Trading in Overbought condition:

Jab trader ko overbought condition man koi Bearish trend reversal candlestick pattern mila aur usi time price 70 level ko cross down kara to is per trader ko ""sell ki trade"" active kerni chaheye.

Stoploss and Take Profit:

Is condition man trader ko Candlestick Patterns k lehaz sa stoploss aur take profit ko place karen.

Oversold Condition of Market:

Jab price line 30 k level sa nicha ho to isko us particular currency pair k price k oversold ka batata ha. Is condition man trader ko sell ki opportunity ko avoid kerna chaheye q k is condition man price ka mazeed fall kerna ka chance bhot less hota ha aur kisi b movement price oper ja sakti ha. Is liye oversold condition man sirf trader ko buying Opportunity ko avail kerna chaheye.

vBulletin [video]

Trading in Oversold Condition of Market:

Jab trader ko oversold condition man koi bullish trend reversal candlestick pattern mila aur usi time price 30 level ko cross down kara to is per trader ko ""buy ki trade"" active kerni chaheye.

Stoploss and Take Profit:

Is condition man trader ko Candlestick Patterns k lehaz sa stoploss aur take profit ko place karen.
...

Re: How to trade with ""Relative Strength Index Indicator"" in forex trading?

Assalamu Alaikum Dosto!

RSI Indicator

Relative Strength Index ya jiss ko aam tawar par RSI indicator kaha jatta hai, ek mashahoor indicator hai, jiss ko J. Welles Wilder ne design kia hai. RSI indicator market ki changing ki assal buy ya sell ka signal detta hai. Stock markets main RSI indicator ka istemal prices k tops aur bottoms levels (ziadda tar ye 30 aur 70) ko maloom karnne k leyye kia jatta hai, jiss ka pemanna 0-100 hai.
RSI indicator up days k closing price k average ba-muqabela down days k closing price k average par mabni hai, jiss main aam tawar par 14-days ka time period ka istemal kia jatta hai. Lekin dosre time period bhi istemal keye ja sakte hen.

RSI Indicator Formula

RSI = 100 – (100 / 1+ U/D)

U = Average of upward price closes (EMA of gains)

D = Average of downward price closes (EMA of losses)

Explanation

Technical analysis k dawraan charts pattern ko analyze karnne k leye, sab se ziadda mashahoor technical indicator RSI oscillator hai, jo k prices k mazboti main tabdeeli battati hai. RSI indicator aik sab se ziada maqbol aur assan tool samjha jatta hai, jiss ko aik basic graph par 0 se 100 tak dekhaya jatta hai. RSI "Stochastics Oscillator" ki tarah market main bohut ziada buy aur sell ki nishan-dahi kartti hai.
RSI indicator main bunyadi tawar par 30 ya us se kam ki reading ko oversold soratehall samjha jatta hai, jis ka matlab hai k market khareedari (buy) k leye tayar hai. Jab us k bar akas reading par 70 ya us se ziadda overbought sorratehal battati hai, jiss se market main ferokht kunendagan (sellers) k leye sell ki opportunity hoti hai.

RSI Centre Line Crossover

1. Rising centerline crossover: Rising centre crossover uss waqat hota hai, jab RSI indicator ki value 70 ki taraf barhte howe scale parr 50 line se upper chali jati hai. Is se zahir hota hai, k market main bullish trend main chal raha hai aur 70 tak ye trend barqarar rahegga.
2. Falling centerline crossover: Falling centerline crossover uss waqat hota hai, jab bhi RSI indicator ki value 30 ki taraf barhte howe 50 k line ko cross karti hai. Is se zahher ho rahha hotta hai, k market ki trend taqqat main kamzor ho rahha hai, aur RSI k 30 k line tak pohuchne main ye bearish trend baqarar rahega.

Benifits of RSI Indicator

Aisi movement jis ko aam candlestick ya bar charts par assani se maloom nahi kia ja saktta, wo RSI indicator ki madad se maloom ki ja sakti hai. RSI indicator par support aur resistance levels ziada wazeh dekhaye de saktte hen. RSI indicator par 30 nechay aur 70 se upper ki nakami reversal janne ka ishara detti hai. RSI indicator aur Prices k darmeyan divergence kamyab reversal indicator ho sakte hen.

Trading

RSI indicator trading k leye sab se asan tool bhi hai aur dosra ye bohut ziadda reliable bhi hai, jiss ki waja se ziadda tar trader ya analyst analysis main RSI indicator ka istemal zarrori samjhtte hen. RSI indicator k over-bought (70 and above) aur over-sold (30 and bellow) area bohut zarrori hai. Is area main trend k reversal hone k bohut ziada chances hote hen.
RSI indicator ko buy signal k tawar istemal karne se pehle indicator par reading lazmi 50 scale se upper side par honni chaheye, jab k down trend k leye indicator par reading 50 se below honi chaheye, jo k sell signal k leye perfect hongay.
RSI indicator reliable indicator to zaror hai lekin zarori nahi k har daffa indicator lazmi 100% positive signal hi deta rahega. Is waja se RSI indicator ka dosrre indicators k sath ya charts pattern aur price action k sath istemal karte rehna chaheye. Isi tarah se indicator ki accuracy main izafa hoga.