How to use RSI (Advanced)

guys today I’ll be giving you a quick tutorial on how to use the RSI in ways that very few people know how to this is in finding the hidden picture the hidden story in in the RSI, so you know for most cases people the way people use RSI is they use a standard seventy five percent resistance and twenty five percent support, so, if you have that here I’m using the tradingview charge, because it’s a little bit easier to use, if we have that here you know the upper Bann lower than 70% and 30% this is what most people use and this is what most education companies what sort they teach how to use you know there you go you have a simple twenty five percent support here at thirty percent support and seventy percent resistance the thing is this might work for certain cases by most cases it’s about finding the hidden levels of resistance and the hidden levels of support, for example, in this case, if we have a support level right here, if you have a support level right here horizontal support you will notice that multiple times when Prime when price touches this level touches this level here you know you’ll notice that there’s a corresponding bounds here when it’s near here it has a corresponding bounds here, so near here there’s a corresponding bounds here near here there’s a corresponding bounds here, so in this case you can see that the RSI twenty-nine percent thirty percent is a very good level in indicating where possible bounds are going to occur, please note that is never enough to just use the RSI to to trade off the RSI signals alone you have to do it with you know we accept with other indicators like support and resistance and you know Fibonacci retracements and extensions, but Keating on the highlight here is that it is a the RSI the 1730 is just one way of using the RSI to find support and resistance I will now show you how to find hidden support and resistance levels and this requires us to go to just doing this on the fly alright you can clearly see there some kind of resistance here, if you look at the RSI, if we just look at here this is 61% this is 61% horizontal resistance and what I what we are seeing here is hold on what we’re seeing here is you can see how our side s RSI resistance at 61% here know that some price rekted off it correspondingly over here and when it touched this level again there’s another reaction, if it touch this level again another reaction right over here that’s another reaction and every time price is close you know price the price is clearly held below the 61 percent RSI only when they start to break above it right here do you notice that there’s a corresponding break in price you know I rarely in price, so it’s it’s crucial it’s crucial to know that that you shouldn’t just use the 70% and 30% standard resistance and support levels for RSI instead you can look for different levels of hidden supported resistance, all right, so this doesn’t just happen only in terms of resistance and support, all right you can horizontal resistance and support it can actually happen on in diagonal lines too which I’ll be showing you later now what I want to do now is to just look for other examples of a horizontal support and resistance levels, all right, so it seems like there is another one right about here, let’s see yeah somewhere here this horizontal support line or rather, maybe here yeah this horizontal support line how this works here I will highlight to you this is the 25% sorry this is the 25% support you know it’s not a standard 30% support you notice the area time price touches this level there’s a bounce, so you can see the bounces here, all right now is pricey the bounces are it’s able to hold well above the level you can see how even though price was making new lows is not being able to break past the 35 percent support multiple times, so these are all good examples on how how to find the not only horizontal resistance also the horizontal support level only when it breaks past is strongly here are able to see price start making further lows in fact that this level is using a bounce only when it breaks strongly below here then you can see a corresponding break here, so this yeah once again I mention that this is another example how to find the hidden support resistance levels hmm in RSI and now we’ll show you now I’ll show you how to get the diagonal support and resistance levels or rather how to how to tell when a break is going to happen and this is one very interesting pattern form, if you notice here this is a very interesting configuration what you see here is this rather yeah this is every time price reaches here there’s a bounce price which is here there’s a balance price which is here there’s a bounce correct, so this to us is a hidden diagonal level diagonal support level and you’ll notice that while this is happening price is actually increasing the price is rising up all the way it keeps increasing is making is rising higher and higher you know making higher lows, so we are thinking when is price going to break you know it’s just rising and rising and rising and the time price breaks is actually right here, if you notice this is where it breaks the horizontal support and this corresponds to right about here right about here, so at this level is already telling us that hey it’s time to get off the market, so you will notice what happens at this exact point you’ll notice that price actually rises up a little bit further right these are this is rather what I like to call a priest signal the first signal comes from the RSI only after that thus price I’m breaking down after then, so RSI basically the momentum breaks what usually happens what usually happens is that it likely will make a pullback you know it will make after it breaks down here you make a pullback to the resistance line gives you one last chance to get out of all your positions before it collapses, so in this case you can see how the moment it broke you have one last chance to get off your position here before I went all the way down you plummet it down right, so this is another example of how to how to identify how to identity RSI to identify breakout levels you know horizontal diagonal support levels as indicated by here notice how imagine you’re just imagine you are you’re plotting this RSI in real time, all right you see one support level and the minimum I usually recommend is 2 to 3, so moment you see two support levels on RSI and it corresponds to two bounces two significant bounces you see in price the next thing you want to do is that, you start drawing the ascending support line you know diagonal support line and all and you start noticing that price is just about on the top bounds this corresponds to this bounce here right, so we we can use this diagonal support levels to identify where bouncers are going to occur and, if a balance doesn’t occur after at least one you know – preferably tree bouncers have we met then we can tell that this fourth one is going to be a breakout and when it’s a breakout you have to be careful, because that’s where the market is really changing direction I will try to highlight a couple of more couple more examples of how this occurs right the next example would likely be in this case here here we go this is a bullish breakup, so we go for bullish line, so what happens is that you will notice how price every time price reaches this level here, let’s amuse arrow this level here you know that was a reaction rich this level here that was reaction this level here that’s a reaction this level here that’s your reaction you can tell it something’s up you know this is very beautiful this diagonal descending resistance line and only when price breaks out here right at this point here do you see a huge break up there and in this case that wasn’t a pullback or rather it was a little bit of a pullback to the support level before RSI just went on and price just went on, so in this case, if you have been short, if you have been shot from here all the way down now assuming you’re looking at RSI you know all the way down here this is where you’ve been shot until you know you have you have been looking at the diagonal descending resistance line and you have been shot every time price as long as RSI holes below this level and the moment it breaks pass you know you, this we have taken up quite a bit of your profit you know and the interesting thing like I mentioned previously is that there was a pullback as usual most of the time there’s a pullback to the RSI support before it just launched up in the other direction, so this pullback is your chance was a chance to get out before price just take off in the other direction, all right, so this is another example of how you can use the RSI you know not only to tell when bearish you know breakups are going to happen, but when bullish breakouts are going to happen and more importantly how you can use this RSI to find when exactly a change in direction it’s going to happen a change in momentum of the market is going to happen this usually what I call it this usually occurs in a knot, so obviously you have to find the really beautiful you know ascending support and resistance levels and this just for the sake of this example what I find very beautiful here and this is that there is this very, if you look here this is the level where price meet the most the highest high, all right in this level here, so we are going to draw a descending support line somewhere here it’s, take some fluctuations once in a while the thing about the markets is that you can’t be too strict on getting every single point right, but in this case I can see a very clear a very clear case here that is every time price reaches this level a time price reaches this level that was a reaction in this reaction here you know there’s a reaction right about here is a reaction here the reaction here then massive spiking that’s why I’m allowing for a spike above the RSI and the interesting thing here is that this is where price started to break down and from here my forecast is actually that you you rise much further and we’re seeing a bigger correction from here at least to the 62% of this move alright, so this is something to watch out for an example of, if I’m doing this in real time how, I’m going to consider where the market is going to move and the very interesting thing on top of that is that, if you look closely this here price is making a price is making lower lows right here allô allô, so this way and RSI is making higher lows, so, if you follow some of the tutorials that I do this is a classic case a very classic case of a bullish divergence yeah bullish divergence I’m sure my writing is, so horrible oh goodness yeah bullish divergence a bullish divergence especially when when working in tandem with a breakup as you can see a breakout above our ascending support line and I’m a descending resistance than support line is a very good indication that price is going to make a massive bounce from here and this is just another example of combining the many different techniques use in in RSI to find a clearer picture of the momentum of the market RSI is meant to be the relative strength index, so don’t just you don’t just use it based on the 30 percent support 70 percent resistance rule, if you’re using it just for that it’s a no it’s a terrible waste it’s a terrible waste of all the talent and Andy and the potential that the RSI indicator has the the key thing is to recognize this true potential through looking at the different patterns it says this can come in the form of hidden resistance lines hidden support lines ascending support ascending resistance and breakouts the breakouts of ascending support and resistance breakouts of horizontal support and resistance levels every time you see a pattern occur you know the key thing you want to do at least in this early stage is what I would recommend to swing by the live trading room we have a triple wd4 ex-army calm / life – 4 X – trading – room and post your questions there post a chart there many of the Train you know it’s a free live trading room, so many of the Train veterans they’re you know they would see your chart and say hey this is correct or you know this is wrong and they’ll correct you, so that you can be a better trader alright and at the same time we always appreciate more eyes on the market looking for looking for key levels key key strategies to look out for as a most of time we we cannot monitor every single market on every single time frame now we may be on the 1 hour time frames, but, if you have more time to be on the 15 minute time frame know that gives us more trading opportunities and, so you know feel free to practice as much as possible and swing by the live trading room and post your questions there alright, so I hope this is this video helps you better understand this how we can use the RSI to find you know not only support and resistance levels, but also when price price is going to change its momentum from bullish bearish or bearish to bullish you know when potential breakouts are going to occur when you should take a profit and you know when to get off the market alright, so, if you find that this video has helped you leave a thumbs up on this video in youtube, if you have questions post them in the comment comment section below or as I would advise go to our live trading our live trading room it’s free now it’s mainly for Forex of course the link should be in the description below is a triple w dot d Forex army comm slash life – 4 X – trading – room this room should just go to and post your questions there alright that’s it for me keep a lookout on some of my other videos I’ll be teaching you how to use this stochastic to find hidden support levels and resistance – I’ll be teaching you how to use Fibonacci projections and retracements and you know in essence just #NAME? and combining them together – really what we call come up with a confluence supporting resistance all that will be touched on later for now that’s it for me thank you very much for your time and P sound.

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