I hope that you guys have a great Christmas.
In today forex faq, I will be answering a question by one of our fellow traders asking about the usage of forex RSI indicator.
Below is the question
I try to use forex rsi indicator, please explain how to use.
In fact, I have written an article about this forex rsi indicator some time back and you can take a look at it here.
Maybe let me take a little bit more about this indicator in this post. The RSI indicator is an oscillator which is used to tell whether the market is currently overbought or oversold.
It will be very useful in helping us in our entry or exit of our trading position.
Let says that we are looking to go LONG and we see the price approaching a major support level. At this point, you should check the forex RSI indicator to see if the market is oversold.
If it is indeed oversold, you can then enter a LONG trade.
If you are looking to go SHORT, you should check the indicator to see if the market is overbought.
I hope that I have explained this indicator well and if you are interested to know more about this RSI indicator, you can take a look at my previous post.