How to Simply Use the RSI with Japanese Candlesticks to Identify Opportunities
📊 Relative Strength Index (RSI) - A Simple Market Reading
Have you heard of the RSI and want to quickly understand it? Follow this simple explanation to learn how to read it and use it with Japanese candlesticks to enhance your trading decisions.
1. What is RSI? 🤔
Abbreviation for Relative Strength Index.
A number ranging from 0 to 100 that measures the strength and dynamism of price action.
2. Key Levels 🧭
Above 70 → Overbought Zone
Below 30 → Oversold Zone
3. How to Read It Practically? 🔍
1. Open the timeframe (hourly, 4-hour, daily).
2. Set the RSI to the default setting (14 periods).
3. Monitor if the indicator line crosses 70 or drops below 30.
102,797.2
-0.91%
4. Combining RSI with Japanese Candlesticks 🕯️
Example:
We found a Hammer candle at a support level, and the RSI appeared below 30.
This is a strong buy signal convergence: a reversal candle + an oversold indicator → an entry opportunity.
5. Smart Tips 💡
Don't rely on RSI alone: Combine it with a candlestick pattern or moving average.
Set a stop loss: below the point where the green light appeared.
Try on a demo account before using it with real money.
✨ Try these steps and share with us:
Where did you last see an RSI close to 30 or 70?
