In this STEEM analysis, I talk about a more advanced strategy for using the RSI indicator. Although I do not suggest making many trades in a bear market, sometimes opportunities come up that you cannot miss out on. Consolidation periods are predictable. Often times coins are going to bounce between support and resistance levels.
When this occurs, it is important to look at additional indicators. I love the RSI. The RSI helps to point out when a coin is overbought and oversold. Many traders do not realize that they can do analysis on the RSI itself! I always draw support and resistance lines on the RSI so I am able to determine the “normal” movement of the indicator. In this example, we placed the trade as soon as the RSI fell below the support.
Technical analysis is all about looking for multiple indications of market movement. Don’t just use one strategy or one indicator. Start to understand how coins move and you will start to see the patterns that occur within charts. As always, be confident with all of your trades and never get greedy.