We have published several articles on RSI recently, and so, many of you ask about it and want us to have it on our charts to explain how it works and confirms the trade setups based on the trading strategies that we follow and teach our followers here. We just did it and created the first video. We will do our best to have our market analysis back too. So please make sure to follow us here on our website and also on Our YouTube Channel.

So let’s get started.

First, please read these articles to make sure you know everything about what we have explained about RSI on this site:

Also, please make sure to watch this video which is related to the below article, and please don’t forget to Subscribe to Our YouTube Channel. If you want to become a consistently profitable trader, you need to follow our videos religiously.

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Our website users always ask about indicators. Please make sure to read the above articles first. If you read these articles, you will find out that RSI is one of the most important indicators. It is so reliable when we combine this indicator with or system, which is candlesticks and Bollinger Bands, you will see how it works. In one of the articles, I’ve explained that you can easily analyze RSI and find the support and resistance lines that form on RSI, and then you can follow their breakouts formed by RSI, while you also follow your technical analysis and trading strategy on the price movement.

In one of the other articles, I’ve talked about the 70 and also 30 and 50 levels that you can see on RSI indicator. These levels are so important:

If you have been following us on Our YouTube Channel, you know that we haven’t been used to have any indicators on our charts, but just because of those articles and also the users who are¬† always asking about having some indicators on our charts, we have added RSI to our charts, and from now on, we use this indicator to teach you how to analyze the markets, using this indicator as well.

RSI is such a reliable indicator. You don’t have to have it on your charts if you follow for example our Bollinger Bands Squeeze trading system. However, RSI can be a big help on your charts.

Below is GBP/USD daily chart. You see a Bollinger Bands Squeeze formed on the chart. I am using it as an example. If you want to know what Bollinger Bands Squeeze is, you can watch this video too, although there are some articles about it on our site:

Bollinger Bands Squeeze forms when Bollinger upper and lower bands become so close to each other and start moving sideways. They become almost parallel with each other as you can see below. It is a great strategy because when Bollinger Bands Squeeze forms on a chart, it tells you that a big and a strong movement is on the way and you can get in the market and make some money. You have to wait for it until it forms completely. Bollinger Bands Squeeze has support and resistance lines or levels. First, you must wait for a movement that forms before the market starts moving sideways and form Bollinger Bands Squeeze:

RSI 9 and Bollinger Bands Squeeze

If you are not already in, you have to wait for the market to go sideways after the strong movement to form Bollinger Bands. Then you should wait for a breakout, which is agreeable to the direction of the movement. For example, if there was an up movement like the above example, and then the market starts moving sideways, then you have to locate the Bollinger Bands Squeeze resistance line, and then you have to wait for the breakouts. Once one of the candlesticks closes above the resistance line of Bollinger Bands Squeeze Pattern, and then the next candlestick opens, that’s the time to get in. In the above example, you could set an 80 pips or 90 pips stop loss, but as you can see above, the market went up for over 500 pips after the resistance breakout. You could set your target even five times bigger than your stop-loss size.

If you wanted not to lose at all, you could take two positions. I mean you could split the position into two positions. For example, if you wanted to take a two lots position, you could take two one lot positions and then set the same stop loss for both of them. When the market moved to your favorite direction for 90 pips, which is the same size as your stop loss, or 180 pips, which is twice of your stop loss size, you could close one of the positions, and then move the stop loss to breakeven for the other position. To maximize your profit, you could could close the position when the price moved up for 270 more pips.

In the above example, December 3rd 2019 candlestick closed above the resistance line of Bollinger Bands. Then, when the next candlestick opened, that was the time to get in the market. At the same time, RSI also formed a resistance line breakout. Once the December 3rd 2019 candlestick closed above the resistance line of the formed Bollinger Bands Squeeze, RSI also closed above its own resistance line. Once the next candlestick opened, RSI was already above the 70 level, which is a strong buy signal, because when RSI breaks above 70 level and stays there, the market goes up for several candlesticks, which is a great time to buy and hold the position to maximize your profit:

So far, we have introduced so many strong trading systems here on this site. So many strong trading strategies that if you learn and then wait for them to form strong trade setups, you can make money consistently. In one of my other videos, I have talked about your account balance and the way that you can make money if you start with different account balances. Please make sure to read this article and watch the related video carefully: How Much Money Can You Make Trading Forex? Can You Become a Millionaire Through Forex Trading?

According to the above article, if you want to make money through Forex trading consistently, and if you want to make a living or even make a fortune through Forex trading, then you need to do two things:

  1. You must become a consistently profitable trader who makes, for example, 2-3% profit every month, consistently;
    and…
  2. Once you become such a consistently profitable trader, you must be able to open a reasonably big live account.

If you don’t do that, you won’t be able to make enough money through Forex trading.

You can achieve both of these on our website, because here we teach you how to trade and you will learn how to become a consistently profitable trader. Above all, here we have made it possible to make money on our website, even by browsing our web pages and reading our articles. So everything you need to make a fortune as a Forex trader is here on our website. Make sure you join our LuckScout Club and start making money even from today: Join the LuckScout Club to Make Money Online from Home