Readings above 70 indicate an overbought market, while readings below indlcator indicate an oversold market. However, once RSI advances above 70 it is not yet a signal for an immediate Selling, hrendline RSI may stay in overbought area for a long-long time. In fact, when a strong uptrend develops, readings above 70 are just a beginning of a great upward move; an opposite is true for a downtrend and readings below Opposite true for an oversold RSI: Forex traders also use 50 level of the RSI indicator, which separates buying forces from selling forces on the market.
TrueTL - True Trendline Indicator
Forex traders use RSI to draw trend lines. While RSI's trend line stays intact, it kndicator that a trend holds well. With RSI trend lines Forex traders are able to receive a much earlier warning about upcoming trend changes since RSI trend lines witness a breakout few candles earlier than chart trend lines. RSI trend lines are especially useful on large time frames.
Checkout this arbitrary RSI trendline favorite which draws all trendline evenly on the RSI inner initial. [IMG] [IMG]. Criterion this bullish RSI trendline favorite which draws all trendline everywhere on the RSI substitute window. [IMG] [IMG]. We can also use volatility lines on the RSI to report the previous month of the buyer.
When RSI approaches 70 traders watch for dowjload bearish divergence, which occur when actual RSI readings begin to decline while prices continue climbing up. RSI Divergence suggests that a current momentum is over and traders should look indicatoe protect their profits and be ready to trade in the opposite direction. Alert Settings Alert Functions: Alert for TrueTL's lines: Color Filter: Switch the color filtering to the other trendlines or horizontal lines to alert. Alert Only For This Color: Alert For New TL: Break Alert After Close: Break Alert Before Close: Touch Alert: Touch Distance: MT4 ID: Sound File: Pictogram Alert: Pictogram Symbol: Pictogram Corner: Write Alert to File: RSI Width: RSI Style: Trendline Color: Trendline Width: