rsi indicator in forex trading

RSI indicator ka talluq oscillators ke aik group se hai relative strength index ka asharih yeh taayun karne ke liye market ki sargarmi ki satah ki pemaiesh karta hai ke aaya yeh ziyada farokht shuda ya ziyada kharidi hui had mein hai, yeh ahem signal is baat ka taayun karne mein madad karta hai ke market kya kar sakti hai ziyada RSI numbers ziyada kharidi gayi haalat ki nishandahi karte hain aur is liye aik mandi mein tabdeeli ki tawaqqa ki ja sakti hai, jab ke kam tadaad ziyada farokht honay wali haalat ki nishandahi karti hai.

Forex market ke silsilay mein relative strength index ke tajzia ka istemaal karte hue yeh maloom karna mumkin hai ke kon si market achi karkardagi ka muzahira kar rahi hai aur kon si nahi yahan ahem cheez yeh maloom karna hai ke order pemanay ke mutabiq kon si currency market oopar ja rahi hai, yeh tajzia sarfeen ko sarmaya kaari ke liye behtareen asason aur financial ration ka taayun karne mein madad day sakta hai jab aik sarmaya car kisi khaas assets ki qeemat ki taaqat ko daikhta hai to woh currency mein exchange rate par is ke asraat ko intehai ahem relative strength index ke sath samajh sakta hai is ki qader is ke sathiyon mein sab se kam nahi hogi.



Bohat se trader new anay walon ke wide sector ke samnay relative strength indicators aur stochastics indicator ka istemaal karte hain kyu kay woh qabil aetmaad indicator hain lekin is muamlay ki sachai yeh hai ke tamam indicator durust signal jari nahi karte jaisa ke kuch log tasawur karte hain jab sab se oopar ki passion goi karne ki koshish karte hain aur market mein neechay, jab RSI 30 tak girta hai to kuch kehte hain ke market over sold marhalay mein daakhil ho chuki hai, jab ke bohat se logon ke liye index 70 ki level ko uboor kar chuka hai jis ka matlab hai ke market over bought marhalay par pahonch gayi hai, stochastics indicator istemaal karte waqt jab index 20 ki level se neechay ajata hai to currency ke pair ko over sold area mein jaan boojh kar indraaj samjha jata hai, aur jab index 80 ki level tak barh jata hai to yeh ziyada kharidi hui jagah mein daakhil hota hai.

Bohat se traders ka khayaal hai ke yeh indicator bohat kaar amad hain kyu kay yeh hamein new deals karne ka sahih waqt batatay hain jis mein bil akhir maqool munafe ke sath bahar niklana bhi shaamil hai, bohat se logon ke khayaal ke baraks kuch mahireen un signal ko kam se kam istemaal karne ka mahswara dete hain, jab ke dosray un ko dosray technical signal ke sath milaane ka mahswara dete hain lekin bohat se log un signal ko apni mehdood ifadiyat ki wajah se chart par shaamil karne ko tarjeeh nahi dete hain, is ke bawajood yeh daawa nahi kiya ja sakta ke yeh signal hamesha nakam hotay hain kyu kay yeh baaz auqaat ye indicator khaas tor par trend ke aaghaz aur ekhtataam par bohat durust nataij dete hai.

Re: RSI indicator in forex trading

RSI and Forex

The relative strength index (RSI) is most commonly used to indicate temporarily overbought or oversold conditions in a market. An intraday forex trading strategy can be devised to take advantage of indications from the RSI that a market is overextended and therefore likely to retrace.
The RSI is a widely used technical indicator and an oscillator that indicates a market is overbought when the RSI value is over 70 and indicates oversold conditions when RSI readings are under 30. Some traders and analysts prefer to use the more extreme readings of 80 and 20.1 A weakness of the RSI is that sudden, sharp price movements can cause it to spike repeatedly up or down, and, thus, it is prone to giving false signals. However, if those spikes or falls show a trading confirmation when compared with other signals, it could signal an entry or exit point.
It is not uncommon for the price to continue to extend well beyond the point where the RSI first indicates the market as being overbought or oversold. For this reason, a trading strategy using the RSI works best when supplemented with other technical indicators to avoid entering a trade too early.
The common levels to pay attention to when trading with the RSI are 70 and 30.
An RSI of over 70 is considered overbought. When it below 30 it is considered oversold.
Trading based on RSI indicators is often the starting point when considering a trade, and many traders place alerts at the 70 and 30 marks.
When the alert is triggered, the trader will examine the validity of a trade.
The RSI can give false signals, and it is not uncommon in volatile markets for the RSI to remain above the 70 or below the 30 mark for extended periods.

Identifying Trading Setups Using RSI

Here are some steps to implementing an intraday forex trading strategy that employs the RSI and at least one additional confirming indicator:
Monitor the RSI for readings indicating the market is overbought or oversold.
Consult other momentum or trend indicators for confirming signs of an impending retracement. For example, if the RSI shows oversold readings, a retracement to the upside is anticipated though not necessarily confirmed
It is considered good practice to look at initiating a trade looking to profit from a retracement if one of these additional conditions are met:
The moving average convergence divergence (MACD) has shown divergence from price (for example, if the price has made a new low, but the MACD has not and has turned from a downslope to an upslope).
The average directional index (ADX) has turned in the direction of a possible retracement.
If the above conditions are met, then consider initiating the trade with a stop-loss order just beyond the recent low or high price, depending on whether the trade is a buy trade or sell trade, respectively. The initial profit target can be the nearest identified support/resistance level.