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RSI Trading Indicator Explained for Beginners | RSI Trading Strategy

In today’s video we will cover the RSI trading indicator, one of the most popular technical analysis indicators. RSI stands for relative strength index and is used to measure the extent of price changes for a given asset or stock. But to know how to trade with the RSI indicator, you first need to know how to read and interpret its display as an oscillator ranging from 0 to 100. Also, different charts may require different settings, so we will also talk about what RSI indicator settings are appropriate for different situations. Thus, for instance, for RSI day trading you will want to use a lower setting than the default chart settings of 14. And we will also give you examples of a good RSI trading strategy to get you started with this technical indicator. One thing to keep in mind when using an RSI indicator strategy is that this index can often create false alarms. So it’s important to take into account trading signals that are in line with the trend and recognize when there’s an instance of RSI divergence. Watch the full video to see rsi explained in detail and for our advice on how you can integrate this indicator in your own trading strategy. And if you’re already using an RSI system, let us know how it’s working for you in the comments. If you liked our “RSI Indicator Explained” video, please don’t forget to give it a thumbs up! And for more on how to use the rsi indicator, forex trading tips and other how-to’s, be sure to subscribe to the Capital.com channel! #RSI #RSIIndicator #RSIDivergence *** Explore trading and start investing with Capital.com. CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 71.2% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.