Easy way of trading with RSI

Relative Strength Index (RSI) indicator is one of the most widely used oscillator lines by senior traders. Why professional traders often use this indicator? Due to the Relative Strength Index indicators can identify circumstances prices have reached overbought or oversold. Keep in mind that any market price movements will surely always overbought and oversold levels reached. By knowing the price had been overbought or oversold area then we can do an open position with precision. 

Relative Strength Index indicators already available in MT4, with default settings i.e. the period 14. Actually, we can change these parameters according to the will of each one of us, depending on our understanding in using The Relative Strength Index indicator. But, it seems the most appropriate parameters and is often used by professional traders are from 14. We just have to get used to using these indicators so that we can easily earn profit consistently. 

Relative Strength Index indicator consists of a line of curves that always moves follow the direction of the market, with the highest level of 0 to 100. Level 70 – 100 is overbought level. While the level 0 – 30 is oversold level. Traders capitalize on areas of these levels to Transact buy or sell. At level 70 – 100 (overbought level) as an area for sell. While at level 0 – 30 is an area to buy. However, we may not necessarily be directly open buy or sell when it reaches the critical area, there are rules that we have to follow so that we don't lose. Following is the display of the Relative Strength Index indicator:

The timeframe that is used when using the indicator RSI typically use timeframe 1 H or 4 H the longer timeframe, then the level of accuracy of the signal generated by the indicator RSI will be the more accurate. Keep in mind that indicators RSI is no match for the aggressive trader (trader short term). Because of the indicator RSI only gave the signal for the long term. Therefore RSI is very suitable for a long-term trader. Therefore, patience and discipline is very important when using the indicator RSI.

So how do I trade with using Relative Strength Index indicator?

OPEN TO BUY

• Note If the prices have reached oversold levels (within the level 0 – 30)
• Wait until the RSI crossing level 30 heading into the top of the
• At that, the point the note chart by looking at candlestick patterns are formed. If at the same time price left the level 30, the chart formed bullish candle pattern (eg. bullish engulfing, and others) then we immediately open BUY. 

OPEN TO SELL

• Note If the prices have reached overbought levels (in the level 70 – 100)
• Wait until the RSI crossing level 70 heading to the bottom of the
• At that, the point the note chart by looking at candlestick patterns are formed. If at the same time the price of leaving level 70, the chart pattern formed a bearish candle (for example a bearish engulfing, and others) then we open SELL immediately.