Relative strength index (RSI)
Relative strength index (RSI) is a price following oscillator that lies between 0 and 100. There are 3 distinct zones in the graph of this indicator: upper zone above purchased
use Methods
If the top of the RSI was formed in the upper zone (above purchased zone {: img 70%) and then the indicator to the middle zone has returned, the price would be in the same direction
If the bottom of the RSI is formed in the lower zone (above secondary zone {: img 30%) and then to the indicator is returned to the middle zone, the price would move in the same direction.
Divergence: if the price is a new minimum / maximum, but not confirmed by a new minimum / maximum on the RSI chart, the price correction takes place in favor of the direction of the RSI.
Note: On the RSI chart levels of support / resistance and reversal patterns sometimes more apparent than on the price chart.
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Forex is simple follow the trend and you will rich.
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