RSI (Relative Strength Index)

RSI (Relative Strength Index)

RSI also helps to determine the overbought/oversold state of the market to buy low and sell high. The readings of the indicator fluctuate between 0 and 100. If RSI rises above 70 bound, it means that the pair is overbought. If RSI falls below the 30 line – the currency pair is oversold. Moreover, as with MACD, a divergence between RSI and price may warn of the market's reversal.

The indicator may be also used during a trend to determine the best levels to enter and exit the market. In this case, you should trade only in the direction of the trend, when the indicator leaves critical levels. For example, you can buy during an uptrend when RSI gets above 30. During flat (sideways) market, you may use RSI signals as buy/sell signals. 

Popular

America will probe German and Japanese car makers over alleged patent violations

America’s on the verge of starting an investigation into whether thermoplastic components utilized in some Japanese as well as German vehicles sold in the country violate its patent laws or not…

Gold edges down toward 3-week minimum after Congress hits spending deal

On Monday, gold headed south in European trade, making its way toward a three-week minimum after American congressional leaders came to an agreement to fund the government via the fall, thus easing worries as for a shutdown of the federal government…

Crude edges down in Asia on Caixin PMI

On Tuesday, crude prices traded weaker because a poll on Chinese manufacturing came in weaker than expected and market participants looked ahead to American inventories on oil as well as refined products to set the overall tone…

Deposit with your local payment systems

Callback

A manager will call you shortly.

Change number

Your request is accepted.

A manager will call you shortly.

Internal error. Please try again later

Beginner Forex book

The most important things to start trading
Enter your e-mail, and we will send you a free Beginner Forex book

Thank you!

We've emailed a special link to your e-mail.
Click the link to confirm your address and get Beginner Forex book for free.

You are using an older version of your browser.

Update it to the latest version or try another one for a safer, more comfortable and productive trading experience.

Safari Chrome Firefox Opera