RSI Indicador tecnico Explicacion y ejemplos

 

Source

Crypto Academy 

introduction

Welcome everyone to this 4 week in the cryptocurrency academy, this week we will talk about RSI indicators and how to calculate them, and their usefulness since they give us an accurate forecast for the future about the destination of purchases or sales.

What is the Relative Strength Index - RSI and how is it calculated?

The RSI is an indicator in the form of a graph that serves to measure overbought and oversold this indicator goes from 0 to 100 with 70 being the mark to indicate overbought and less than 30 for overselling this system was created in the late 70s and The beginning of the 80s and despite the technological advances that we have gone through, it is still used in these times this indicator uses cycles of 14 to be able to accurately measure the market trend

the average gain between the average loss then divide the gains with the losses and the relative average is obtained, RSI index to be able to get the RSI is the same as 100 - 100 / (1 + rs) the rs is the relative resistance and this indicator is seen on a graph that goes from 0 to 100

Can we trust the RSI in cryptocurrency trading and why?

I would personally trust the RSI since it has been used since the 70s and 80s which means that if it has been used for all that time it is because the margin of error has been minimal going on that and they show me the activity in the chart already mentioned above I would trust the RSI

How is the RSI indicator set on the chart and what does the length parameter mean?

1 enter the coinmarketcap page and look for the pair of our choice

2 proceed to click on the word TraidigView

after having pressed we will click on fx indicators

then a search menu will appear in which we will place the name of our RSI indicator once the results appear we will indicate that we want to observe the relative strength index

After the search engine shows you the result you will go to the configuration button in which a menu will appear in which you can change the length of the RSI

Why is it equal to 14 by default?

The time intervals are 14 because at the time of the creator making the formula on 14 was his result and therefore it was that number that he put in the time intervals however if you do not like those times you can change them at will whenever you like < / div>

Can we change it? (Screenshot required)

If it can be changed by giving the length and some arrows will appear on the sides, these arrows will help us to go down or go up to the length we want, after having chosen which length we want, we will give it ok and you will have configured your length

How do you interpret overbought and oversold signals when trading cryptocurrencies? (Screenshot required)

One of the ways to interpret the overbought and oversold signals is with the graph that I show below in the graph we can see that when the peak exceeds the limit of the 70 line a little above that line you can see some squares that Remark that those black squares represent overbought and the red square that is below the 30 line is oversold in this way you can interpret the overbought and oversold signals

How do we filter RSI signals to distinguish and recognize true signals from false signals? (Screenshot required)

one identifies these signals thanks to bullish and bearish divergences

In order to filter these signals, it is necessary to know the divergences, whether they are bullish or bearish.

in upward divergences there is a tendency to rise while the price force relapses

To observe a downward divergence, the graph will indicate a downward trend and an increase due to the strength of prices

Bullish divergence

Check the chart of any pair (for example, TRX / USD) and present the various RSI signals. (Screenshot required)

Conclusion

The technical analysis is important since with it for many years it has been possible to predict the market, and its prices, the RSI is also used in this type of analysis, with which we see over-buying and over-selling signals that are important to analyze the price. market and realize a future change in trend, this is a very important parameter to be able to know when we should enter the market or when to exit, and thus achieve profits in each operation, analyzing this type of graph is the fundamental pillar of technical analysis.