How to Use RSI Indicator, Forex Trading Indicators

How to use RSI Indicator?

     RSI is one of the basic trading Indicators. One of the best ways to look for exciting short-range setups is to merge the RSI readings with a fundamental disclosure. RSI rules are practically straight forward that are as follows.

1. Traders must be use hourly charts
2. If RSI reading is more than 70,  then go short and the fundamental information shocks to the downside.
3. If RSI reading is less than 30, then go long and the news also positive.
4. Use pre news high or low values for your trading.
5. Your trade must be long term.

Ways to Use RSI:

1. Tops and Bottoms.
2. Chart Formations: Triangle, Head and Shoulder pattern etc.
3. Support and Resistance.
4. Divergence: Direction of the market.

RSI Calculation:

       RSI = 100-(100/ (1+U/D))

U – Average Positive price change
D – Average Negative price change