Momentum based on RSI is as follows-
RSI— 55-60~mild long(25%),
RSI— 60-65~moderate long(50%)
RSI— 65-70~strong long (75%)
RSI Above 70~ very strong long (100%)
I am following very simple trading plan based mainly on RSI and ADX.
Now whenever we wants to initiate trade then firstly we have to decide BIAS for direction.
BIAS based on RSI as follows-
RSI Above 55-Long.
RSI below 45-short.
RSI between 45-55—- neutral.
Continue
Momentum based on RSI is as follows-
RSI— 55-60~mild long(25%),
RSI— 60-65~moderate long(50%)
RSI— 65-70~strong long (75%)
RSI Above 70~ very strong long (100%)
RSI— 40-45~mild short (25%),
RSI— 35-40~moderate short (50%)
RSI— 30-35~strong short (75%)
RSI below 30~very strong short (100%).
Please note, one need to check RSI at closing of the day for continuation of trade and exposure.
Similarly with rising adx and short bias gives confirmation of downtrend.
We doctors can easily manage patients with this two simple time tested parameters.
Same way we can easily manage our trades based on this two simple time parameters of RSI and ADX.
Wish you all happy trading 😄
At expiry certain players take non directional positions by buying both calls and puts at expiry level means they buy straddle at expiry level.
Certain players do the opposite. Continue..
Certain players buy/sell strangle at this range.
More from Rsi
Hats off to @jhunjhunwala_b and thanks to @elearnmarkets for hosting Bharat ji.
Thought provoking, cant learn this sort of applications so quickly from books.
Learnt new ways of looking at RSI 👍
Thought provoking, cant learn this sort of applications so quickly from books.
Learnt new ways of looking at RSI 👍
RSI is one of the most versatile indicators in the stock market.
— elearnmarkets (@elearnmarkets) July 3, 2021
View Webinar: https://t.co/Mlov60NPY2
Join @jhunjhunwala_b and learn how to pick multibagger stocks based on some RSI range rules
Use Code WEB20 for 20% OFF.#rsi #stockmarketindia #stocks #profits pic.twitter.com/eVu3SlsxaJ
Stumbled across this Amazing thread by @nishkumar1977 on RSI Momentum Trading Strategy.
Have put it in pictorial form.
Read the whole thread to understand better.
Retweet to help everyone understand better. https://t.co/vPYoGgQEqm
Have put it in pictorial form.
Read the whole thread to understand better.
Retweet to help everyone understand better. https://t.co/vPYoGgQEqm
A Tattoo has been posting selective screenshots of my Tweets to this followers to showcase how I do not know how to use RSI.
— Nishant Kumar (@nishkumar1977) November 29, 2020
While he runs his shop showing other people down, here are the basics for the wise:
1) RSI above 70 gets into overbought zone but it's the crossover from
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A THREAD ON @SarangSood
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
Decoded his way of analysis/logics for everyone to easily understand.
Have covered:
1. Analysis of volatility, how to foresee/signs.
2. Workbook
3. When to sell options
4. Diff category of days
5. How movement of option prices tell us what will happen
1. Keeps following volatility super closely.
Makes 7-8 different strategies to give him a sense of what's going on.
Whichever gives highest profit he trades in.
I am quite different from your style. I follow the market's volatility very closely. I have mock positions in 7-8 different strategies which allows me to stay connected. Whichever gives best profit is usually the one i trade in.
— Sarang Sood (@SarangSood) August 13, 2019
2. Theta falls when market moves.
Falls where market is headed towards not on our original position.
Anilji most of the time these days Theta only falls when market moves. So the Theta actually falls where market has moved to, not where our position was in the first place. By shifting we can come close to capturing the Theta fall but not always.
— Sarang Sood (@SarangSood) June 24, 2019
3. If you're an options seller then sell only when volatility is dropping, there is a high probability of you making the right trade and getting profit as a result
He believes in a market operator, if market mover sells volatility Sarang Sir joins him.
This week has been great so far. The main aim is to be in the right side of the volatility, rest the market will reward.
— Sarang Sood (@SarangSood) July 3, 2019
4. Theta decay vs Fall in vega
Sell when Vega is falling rather than for theta decay. You won't be trapped and higher probability of making profit.
There is a difference between theta decay & fall in vega. Decay is certain but there is no guaranteed profit as delta moves can increase cost. Fall in vega on the other hand is backed by a powerful force that sells options and gives handsome returns. Our job is to identify them.
— Sarang Sood (@SarangSood) February 12, 2020
