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What is the IQ Option, how to register and open account IQ Option

How To Play IQ Option To Achieve Greatest Profits

3 basic EMA line algorithms in IQ Option

What is an RSI indicator? Use RSI to maximize return on investment (P1)

What is an RSI indicator? 6 ways to use RSI to maximize your return on your IQ Option (P2)

Technical Bollinger Band Indexes In IQ Option

Factors needed to become successful investors!

Ideological investment profit

Make a profit plan

Profit maximization strategy

Basic knowledge about making money online with Binary Option (IQ Option)

Basic operations with the interface of the IQ Option trading platform

How to Apply for IQ Option Account – How to Recharge and Verify Account IQ Option Via Visa Card

Sign up for an IQ Option account

 

“Risk Warning: Binary options trading may not be suitable for everyone, so please ensure that you fully understand the risks involved”

 

RSI (Relative Strength Indicator) is one of the oscillator tools that work on different market conditions and accurately identifies the entry point of the transaction.
Why use RSI?
Determine the point of change / exit point of the transaction.
Determine the length of the trend

How to use RSI

1. Select the “Relative Strength Index” from the list of indicators.

2. If there is no change in settings, click on “Apply”.

How does RSI work?

The RSI (relative strength indicator) is a technical indicator and measures the price movement in the range 0 to 100. The RSI is a popular oscillator indicator. This indicator is quite useful for market trend and horizontal movement. RSI is used to measure the strength of an asset when it compares itself to a given time period and provides this increase as a number between 0 and 100.

  • The overbought indicator surpasses 70% – when the market goes above normal levels because of overbought levels and investors expect price to fall.

     

  • The Oversell when falling below 30% – when the market goes below the normal price when selling too much to lower prices and investors expect the price will increase.

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RSI Strategy

1. Add the RSI indicator to the chart and select the 26-period setting.

2. Wait until the candlesticks are at the loss or sell loss threshold:

  • Threshold loss – when the indicator exceeded 70% is a signal that the market is buying too much, should put a sell order.

 

  • Threshold loss – when the indicator is below the 30% threshold is a signal that the market is selling too much, should put the buy order.

Apply

Using the RSI system in the transaction:

1. Divergence: A divergence signal is received in the event of a difference between high and low oscillations on the chart and price. If the new oscillator on the chart is below the previous oscillation, while the new oscillation level above the previous oscillation level, we can see the difference between the oscillation and the price level. This signal to the upcoming uptrend and revenue is inevitable.

2. Graphic patterns: Graphs are usually formed based on RSI charts (basic graphs) and are used by investors to measure price histograms.

Support and resistance levels: The RSI chart helps us to identify the maximum and minimum values ​​of oscillation.

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Divergence + RSI

One of the eternal problems of technical indicators is to provide Lagging signals. This happens because the calculation tools are linked to the specific price level, ie when the stock begins to rise, the market will fluctuate causing higher prices and vice versa. Therefore, false signs and delays are unavoidable.

One of the most effective measures to overcome this inconvenience is the use of divergent signals. Divergence occurs when there is a difference between the price and the technical indicator, in general, this is the resistance indicator to confirm the higher price. Price divergence is a reversal pattern that finds different types of oscillators, like RSI, that are used by a lot of people.

Simple Layout:

1. Add the RSI indicator to the chart with 21 correction.

2. Find the divergence between the current price and index direction

As in the example above, the price is at a new high, at the same time, the RSI oscillates downward in price and shows weakness. This is the divergence is being displayed and tend to change in the coming time.

Apply

There are many degrees of divergence, the difference of degrees is in the number of peaks and troughs, forming the structure. The second divergence is two vertices, the third is three vertices, … Here is an example of divergence 3.

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Wish you happy and successful transactions!

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