RSI

[oussama94]

For example, if RSI is rising above 70, which
is your preferred RSI reference level, you may
choose to sell the instrument when the price
turns back down below the reference level of
70, placing your stop loss just above the most
recent high. Note that a common mistake is
to sell the instrument as soon as the RSI
reaches your overbought level, and not wait
for it to move back down. This can be a costly
mistake as the RSI can continue to move up
with the price, so always wait for a move lower
before getting in. Again, the exact opposite is
true if prices are moving in the other direction;
when the RSI reaches or passes below your
oversold level and then rises back up above it,
this can be considered a buy signal and you
may choose to buy the instrument, with a
stop loss below the most recent low.