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, isliye forex trading ko seekh ker kerna chaheye.

Importance of Indicators in forex trading:

Forex trading man trader kisi b currency pair ya commodity ko buy/sell kerna k liye technical analysis kerta han. Technical Analysis man trader currency pairs aur commodities k price chart 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 ko price chart man place ker k trader technical analysis k doran market price ki movement ko track ker k trader ko safe trade entry aur trade exit levels ko identify ker k deta han.

Relative Strength Index Indicator:

Relative Strength Index Indicator ak simple aur easy to use hona wala indicator ha, jisko all over world tamam financial markets man commonly use kiya jata ha. Relative Strength Index Indicator ko J. Welles Wilder Jr. na develope kiya ha.

Relative Strength Index Indicator ak momentum oscillator ha jis man RSI line ""0"" to ""100"" k dermiyan move ker k ak graph per result show kerti ha. Ye indicator price k past 14 periods ki average price ki base per price k ""Overbought"" aur ""Oversold"" ka batati ha.

Overbought:

Overbought market condition man RSI line 70 k level sa above hoti ha aur consider kia jata ha k market price mazeed oper jana ka koi chance nahe balka kisi b waqt price reverse ho sakti ha. Is liye is doran trader ko market man buy ki opportunity ko ignor kerna chaheye aur sell ki opportunity ko sirf avail kerna chaheye.

Oversold:

Oversold market condition man RSI line 30 k level sa nicha hoti ha aur consider kia jata ha k market price mazeed nicha jana ka koi chance nahe balka kisi b waqt price reverse ho sakti ha. Is liye is doran trader ko market man sell ki opportunity ko ignor kerna chaheye aur buy ki opportunity ko sirf avail kerna chaheye.



Calculation of Relative Strength Index Indicator:

RSI = 100 - [ 100 / (1 + Average of upward price change / Average of downward price change))]

Trading with Relative Strength Index Indicator:

Relative Strength Index Indicator akela market price per trade signal ki accuracy kam hoti ha lakin ager koi dosra indicator ya pattern k use kiya jae to 90% accuracy k trade signal generate kiye ja sakta han.

Buy ki Opportunity:

Jab RSI line Oversold area man ho aur koi b strong bullish trend reversal candlestick pattern such as bullish engulfing candlestick pattern, Tweezer Bottom Candlestick Pattern aur bullish Harami Candlestick Pattern banna to is per trader ko ""buy ki trade"" active kerni chaheye.

Sell ki Opportunity:

Jab RSI line Overbought area man ho aur koi b strong bearish trend reversal candlestick pattern such as bearish engulfing candlestick pattern, Tweezer Top Candlestick Pattern aur Bearish Harami Candlestick Pattern banna to is per trader ko ""sell ki trade"" active kerni chaheye.

Stoploss and Take Profit:

Stoploss and Take Profit ko trader ko chaheye k pattern k motabiq place kara.
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Re: How to trade with ""Relative Strength Index Indicator"" in forex trading?

Asslam.u.Aliakum Dosto...

dear friends umeed hai ap sab theek hon gy dosto aj ham bat karne wale hain Relative Strength Index indicator k bare main dosto ye boht important indicator hai agr ap achi trading krna chahte ho to isko use kro iske bary main ap se kuch information share krta hn.

Relative Strength Index (RSI) :

dosto market main relative strength Index ik technical indicator hy is sy apko market main achi trades milti hain. ye aik technical Indicator hy jis sy ap market main overbought aur oversold k bary main achy tareqy sy btata hy. Is Indicator ka istemal bahot he asan hy aur hum asani sy market ko dekh sakty hain. Relative Strength Index (RSI) main jab downtrend hota hy aur market down ho rahe hotibhy isi tarha apko market main ye Indicator oversold k level pr indicate karta hy. Oversold aur overbought par ap is main trade kar sakty hain.

Explanation:

Dear member jaisy he Rsi line ko price chart per ploted kiya jata hai tu ham dakhty hain k jaisy he Rsi rise hota hai number and size ka positive closes increase hoti hai or is ka jab fall hota hai tab number or size loses increase hota hai es ky second part ki calculation ka jo result hota hai woh near hota hai 100 to 0 strongly trending market mai Jaise he ap Rsi chart ko above dakhty hain tu indicator overbought condition mai nazar ata hai or uptrend mai stay karta hai agar trend oversold condition mai hai tu es ka trend bhi downtrend hota hai es mai jo hamary new analyst hoty hain woh kafi ziada confuse ho jaty hain lakin es ki learning karny ky bad un ki confusion door ho jati hai.

Description:

Dear jab Rsi 30 level ko cross karta hai horizantal to ye us ka bullish sign hota hai or agar ye below the 70 level than ye bearish sign hota hai ham es ko dosry tariqy sy is trha dakhty hain k agar es ki value 70 or above hai tu ye overbought ya overvalued and ho sakta hai k ye reversal trend ya price ko pullback kar rha ho agar ye value 30 ya below ho tu ye oversold or undervalued condition mai hai.

Trading With Relative Strength Index (RSI):

Overbought:
dear jab bhe market uptrend main movement karti hy to is main ap dekhty hain k RSI 70 k level par ponch jata hy to is situation ko overbought kaha jata hy. Aur is main aap sell ke trade laga sakty hain different Candlestick Pattern ko dekh k ap trade laga sakty hain. Ye sell ke trade ka indication hota hy. RSI k overbought hony par ap candlesticks ko dekh sakty hain air usk indication par ap trade kar sakty hain.

Oversold:
dear jab market downtrend main movement karti hy to ap is main dekhty hain k RSI main apk pass 30 ka level hota hy is main oversold ka indication hota hy. Jab market 30 k level par jati hy to apko market main buy ke opportunity milti hy jis sy ap asani sy trade kar sakty hain. Ye indicator apko market k kisi bhe achy level sy oversold ke indication deta hy jis sy ap market k trend reversal ko dekh sakty hain aur buy ke trade laga sakty hain.