Buy Signals With the RSI and Bullish Reversal …
1. Buy Signals With the RSI and Bullish Reversal …
Candlestick Chart Profits Training Series
www.ForexAutopilotRobot.com – Buy Signals With the RSI and Bullish Reversal Candlestick
Patterns – The Relative Strength Index (RSI) is a fairly popular indicator that can tell you
whether a stock or a currency pair is overbought or oversold. RSI value ranges between 0 and
100. Values below 30 indicate that the market is oversold and above 70 means that the market
is overbought. The good thing is that you can combine RSI reading with candlestick reversal
patterns to further confirm that a reversal is imminent and you can take a long position. You can
also use the RSI to select your exit level. Let’s take an example to make it more clear. Suppose
you want to trade a stock. You are using RSI indicator to determine when the market is
oversold. You wait for sometime and ultimately find RSI reading to be less than 30 meaning that
the market is now oversold and you can enter your trade. But a better way would be to wait for
the bullish candlestick reversal pattern to appear. So you spot one, the famous Three Inside Up
Candlestick Reversal Pattern. This candlestick pattern usually appears when the market is
about to turn bullish after many bearish days. Now when you spot such a candlestick reversal
pattern, it is a confirmation that the market is indeed oversold and is about to turn bullish. This is
the right time to enter the market just at the level where the candlestick reversal pattern
appeared. The beauty of this three inside up candlestick pattern lies in the fact that it …
Tags: Bullish, Candlestick Charts, Reversal, Signals
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