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Buy Signals With the RSI and Bullish Reversal …


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Buy Signals With the RSI and Bullish Reversal …

  1. 1. Buy Signals With the RSI and Bullish Reversal … Candlestick Chart Profits Training Series – Buy Signals With the RSI and Bullish Reversal Candlestick Patterns – The Relative Strength Index (RSI) is a fairly popular indicator that can tell you whether a stock or a currency pair is overbought or oversold. RSI value ranges between 0 and 100. Values below 30 indicate that the market is oversold and above 70 means that the market is overbought. The good thing is that you can combine RSI reading with candlestick reversal patterns to further confirm that a reversal is imminent and you can take a long position. You can also use the RSI to select your exit level. Let’s take an example to make it more clear. Suppose you want to trade a stock. You are using RSI indicator to determine when the market is oversold. You wait for sometime and ultimately find RSI reading to be less than 30 meaning that the market is now oversold and you can enter your trade. But a better way would be to wait for the bullish candlestick reversal pattern to appear. So you spot one, the famous Three Inside Up Candlestick Reversal Pattern. This candlestick pattern usually appears when the market is about to turn bullish after many bearish days. Now when you spot such a candlestick reversal pattern, it is a confirmation that the market is indeed oversold and is about to turn bullish. This is the right time to enter the market just at the level where the candlestick reversal pattern appeared. The beauty of this three inside up candlestick pattern lies in the fact that it … Tags: Bullish, Candlestick Charts, Reversal, Signals Read More: 1/1Powered by TCPDF (