Read this article to make RSI indicator on Binomo easy

RSI is one of the high-rated trend indicators used in the financial market. You can easily find this indicator on the Binomo trading platform.

What is the Relative strength index (RSI)?

RSI or Relative strength index is a trend indicator introduced by one of the most outstanding analysts of all time, J. Welles Wilder in 1978. This indicator is classified as a momentum oscillator, measuring the velocity and intensity of price movements.

This indicator oscillates between zero to hundred and is most typically used in 14 days time frame. When the indicator line oscillates near the zero line it signals that the market is at an oversold level similarly, when the indicator line oscillates near the hundred line it signals that market is at an overbought level.

In case you don’t know, 

Overbought is a market term used when the security is trading above the fair value. As a result, the traders will realise that the asset is overly expensive due to which they might start selling off their assets.  and therefore, a trend reversal is likely to take place.

An oversold level is just the opposite of an overbought level, It is the market represents the security is trading below the fair price which will result in the rush to buy assets among the buyer because trend reversal might take place.

How to find and set RSI indicator at Binomo trading platform

The first step is to log in to your Binomo account and click on the indicator button.

RSI on Binomo

Now, search for RSI on the indicator list.

You can always change the colour and timer of the indicator.

How to trade with the RSI indicator on the Binomo trading platform

 

When the RSI line is near above 80. It indicates the market is at an Overbought level and a trend reversal is likely to take place Here, we should place a sell trade.

 

When the RSI line is near or below line 20. It signals an upcoming bullish trend and here we can place a buy trade.

Final Thoughts

Trading with RSI on Binomo is very easy. You just need to understand the basics of the indicator you can combine this indicator with moving averages like SMA or EMA.

The best thing you can try this indicator on the Binomo demo account and later shift to Binomo real account once you are confident enough. do comment your thoughts below and share your experience with the indicator. I would love to hear from you.

 

 

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