RSI or Relative Strength Index is the division of the average of x days’ up closes and the average of X days’ down closes subtracted with 100 didn’t get it? same here, don’t worry In this article, I am going to cover everything about RSI indicator in simple words. To help you understand the RSI indicator, I am going to use the IQ option. Now, let’s, understand how to configure the RSI indicator on the IQ option.
How to configure Relative Strength Index on IQ Option
Firstly, you need to log in to your IQ Option account. In case you don’t have one fill out the form below.
Once, you have signed up make sure to set your chart to Japanese candlestick and select your desired currency.
Now, click the indicator button and search for Relative Strength Index in the popular section, and click the name.
If you don’t like the indicator’s colour you can surely change it. just click colours and display and change the colour.
How to trade with Relative Strength Index on IQ Option
Before, I tell you how to trade with Relative Strength Index on IQ Option you need to understand some basics about the indicator.
The Relative Strength Index indicator uses a single moving average line as you can see above the yellow line is the moving average line that oscillates between 30 – 100 and the moment it intersects the above two lines it generates a buy and sell signal. Now, talking about how to trade with Relative Strength Index?
When the RSI line intersects line 30 from the bottom it signals an upcoming bullish trend and here we can place a buy trade according to the time frame.
Similarly, when the RSI line intersects line 70 from the top it signals an upcoming bearish trend and here we can place a sell trade according to the time frame.
Given above is the 30 min chart of EUR USD, and the RSI line intersects line 30 from the bottom which signals an upcoming bullish trend so, here we can place a 30 min buy trade.
Similarly, As you can see the RSI line intersects line 70 from the top. so, here we can place a 30 min sell trade.