Relative strength index indicator guide:
Assalam alaikum dear members!Umeed ha ap sb thk hn gy. Jesa k ap janty hain hum ny forex indicators ki 1 series start ki thi jis main hum MACD or Moving average cover kr chuky thy or aj agy barhty hovy hum Relative Strength Index ko discuss karen gy.
What is relative strength index indicator?
Dear members relative stregth index 1 momentum indicator ha jo k technical analysis main bhi istmal hota ha.ye halia price changes ka magnitude measure kar k overbought or oversold situation k bary main btata ha.
RSI dikhny main 1 oscillator ki trha hota ha jo k 2 extreme lines k darmyab ghomta ha jo k 0 or 100 ki ho skti hain ya phr ap apni mrzi k levels bhi laga skty hain.
Traditionally ye kaha jata ha k agr RSI ki line 70 ki value se opr ha to market ko overbought smjha jata ha or reversal ki expectation ki jati ha esi tarha agr 30 ki line se nechy ha RSI to market ko oversold expect kia jata ha or expect kia jata ha k market reverse ho ge.
RSI overbought:
RSI overbought us situation ko kaha jata ha jb market kafi opr jaa chuki ho or buyers apna control lose kr rhy hn or es wqt RSI ki value 80 ya us se oprr hoti ha.
es wqt RSI apko ye indicate karta ha k ab market girny wali ha lehaza mazeed buy ki trade ko hold na krn or new trade buy main na ln.
Q k es level se market ka reversal expected hota ha.
Oversold RSI:
Dear members RSI oversold us situation ko kaha jata ha jb market kafi nechy gir chuki ho or RSI ki values 20 ya us se nechy hn to us wqt RSI ye indicate karta ha k market kafi nechy ja chuki ha ab market opr aygi ya to retracement lygi ya phr trend reverse ho ga lehaza ab sell ki trades hold na kare.
or new order sell main na len.
How to trade RSI:
Dear members agr ap RSI ko use karty hovy trade karna chahty hain to apko RSI k sth sth proce action bhi seekhna ho ga or us or bhi dehan dena ho ga.
jesy hi apko RSI overbought ya oversold ka signal dy to apko sth sth price action mtlb k rejection ki confirmation kr k sth sth support or resistanve dkh k trade leni chahye.
agr ap srf RSI py rely karen gy to apki trades loss main bhi ja skti hain Q k for example RSI overbought ka signal deta ha or ap sell ki trade lety hain
to possible ga k market thori bht retracement le k wps opr chli jy.
NOTE: use proper risk & money management while trading forex.
What is relative strength index indicator?
Dear members relative stregth index 1 momentum indicator ha jo k technical analysis main bhi istmal hota ha.ye halia price changes ka magnitude measure kar k overbought or oversold situation k bary main btata ha.
RSI dikhny main 1 oscillator ki trha hota ha jo k 2 extreme lines k darmyab ghomta ha jo k 0 or 100 ki ho skti hain ya phr ap apni mrzi k levels bhi laga skty hain.
Traditionally ye kaha jata ha k agr RSI ki line 70 ki value se opr ha to market ko overbought smjha jata ha or reversal ki expectation ki jati ha esi tarha agr 30 ki line se nechy ha RSI to market ko oversold expect kia jata ha or expect kia jata ha k market reverse ho ge.
RSI overbought:
RSI overbought us situation ko kaha jata ha jb market kafi opr jaa chuki ho or buyers apna control lose kr rhy hn or es wqt RSI ki value 80 ya us se oprr hoti ha.
es wqt RSI apko ye indicate karta ha k ab market girny wali ha lehaza mazeed buy ki trade ko hold na krn or new trade buy main na ln.
Q k es level se market ka reversal expected hota ha.
Oversold RSI:
Dear members RSI oversold us situation ko kaha jata ha jb market kafi nechy gir chuki ho or RSI ki values 20 ya us se nechy hn to us wqt RSI ye indicate karta ha k market kafi nechy ja chuki ha ab market opr aygi ya to retracement lygi ya phr trend reverse ho ga lehaza ab sell ki trades hold na kare.
or new order sell main na len.
How to trade RSI:
Dear members agr ap RSI ko use karty hovy trade karna chahty hain to apko RSI k sth sth proce action bhi seekhna ho ga or us or bhi dehan dena ho ga.
jesy hi apko RSI overbought ya oversold ka signal dy to apko sth sth price action mtlb k rejection ki confirmation kr k sth sth support or resistanve dkh k trade leni chahye.
agr ap srf RSI py rely karen gy to apki trades loss main bhi ja skti hain Q k for example RSI overbought ka signal deta ha or ap sell ki trade lety hain
to possible ga k market thori bht retracement le k wps opr chli jy.
NOTE: use proper risk & money management while trading forex.