ilmscore | Prediction Details
"so here's an example of how i like to use the rsi for trend continuation if i double click on the rsi you'll see that we are set to seven right and right now we are involved in this live trade that i'll take you through in just a second but let's go ahead and start from the initial break of the moving average down here so initially we break above the 50 period moving average do we go into an overbought scenario right here yes we do so with that being the case what am i waiting on i would be waiting for a pullback into the previous level of structure that was broken which is right here so as we pushed up moved into over ball this is the most recent level we broke if we broke that level most recently then i'm looking in this area for a pullback and buying pressure if i get that buying pressure that's where i want to look to go long considering that buying momentum has come into the market the reason i know this is because the seven period rsi has went above 70 here on our rsi indicator then after that i want to see this pullback i want the pullback to come to the recent level of structure that was broken and i want to buy when i see buying pressure this is just an example of how i would use it for trend continuation so as we continue higher you can see that we consistently repeat this process we go into another overbought scenario we then pull back we don't get to a level of structure this being the most recent level of structure this time so we actually went past it without actually getting any kind of entry reason we then push up we break above our level of resistance we get to pull back into that level of resistance and a big green candle but this candle is a little bit too big i wouldn't i wouldn't feel comfortable entering right there i need to have some room to the upside whenever i actually enter on a trade like this we have another scenario where price pushes up and we get a new higher high we go into over ball yet again we pull back but again this huge green candle does not give me an opportunity to enter into the market then we push up to this high was this high an overbought scenario yes it was this high also goes above 70 on the rsi with that being the case i know i'm going to be looking for the level of resistance that was just broken the level of structure most recently broken and in this case we don't just have a level that was tested once but we have a level that was tested multiple times that adds even more confluence to this area and shows me that this is a level i want to look for a possible buy trade with that being the case i wait to see buying pressure so as we push down to this area we get a strong wick rejection from this area along with this rejection coming straight off of the 50 period moving average which often time acts as a level of support for markets so with those factors coming together and throwing everything together here we have a good opportunity at least based on the way i trade trend continuation with the rsi we have a good opportunity to go long after seeing that buying pressure we are live in this trade now i'll let you guys know how it plays out this is actually a day trading time frame just to show you guys how to use this on multiple time frames for the 15-minute chart it's the same exact way i would use it on the 4-hour chart it doesn't change at all so with that being the case we'll see how this trade plays out and i'll keep you guys updated"
By The Trading Channel (The Trading Channel) | September 30, 2021 | Pending
From video
The Only RSI Indicator Trading Video You Will Ever Need... (Beginners Guide) 00:16:30 - 00:19:28
Interpreted Prediction
A bullish trend continuation strategy uses a 7-period RSI. Conditions are: price above the 50-period moving average, the 7-period RSI going above 70 (overbought), and a pullback to a major level of structure that has been previously broken and tested multiple times. Entry is signaled by buying pressure (e.g., a long-wicked candle) at this structure level, ideally also coinciding with the 50-period moving average acting as support. Stop loss is placed below the swing low of the pullback, and targets can be set at previous structure levels or a 1.4:1 reward-to-risk ratio.

Prediction Details

Topic
RSI Strategy - Trend Continuation (Bullish)

Comments

0 comments

Be the first to share your thoughts.

Like this prediction?

Join to make your opinion count.