What indicator goes well with RSI?

exponential moving averages
RSI is often used to obtain an early sign of possible trend changes. Therefore, adding exponential moving averages (EMAs) that respond more quickly to recent price changes can help. Relatively short-term moving average crossovers, such as the 5 EMA crossing over the 10 EMA, are best suited to complement RSI.

What is the best trend indicator for binary options?

Bollinger bands are a great technical indicator for binary options traders because they clearly indicate price levels at which you should expect price actions. Bollinger bands create a price channel that consists of three lines.

Should I sell at RSI 70?

The indicator value moves between 0 and 100. Theory suggests: that a stock is overbought when RSI is over 70 and oversold when the RSI value is below 30. Hence one must sell the stock if RSI crosses over 70 as it shows that the buyers are overwhelming the stock price and a correction is inevitable.

What is the best RSI trading strategy?

It is not uncommon for the price to continue to extend well beyond the point where the RSI first indicates the market as being overbought or oversold. For this reason, a trading strategy using the RSI works best when supplemented with other technical indicators to avoid entering a trade too early.

Should I buy oversold stock?

Even if a stock or other asset is a good buy, it can remain oversold for a long time before the price starts to move higher. This is why many traders watch for oversold readings, but then wait for the price to start moving up before buying based on the oversold signal.

What is the best overbought/oversold indicator?

relative strength index (RSI)
The most popular indicators used to identify overbought and oversold conditions are the relative strength index (RSI) and the stochastic oscillator. Both tools are momentum indicators and are plotted on a separate graph adjacent to that of the price action.

Which timeframe is best for binary trading?

Instead, look at two or three time frames. Short-term traders can view a 1-minute, as well as a 15 minute and 1-hour or 4-hour chart. The 1-minute provides entry and exit signals while the 15 minute and hourly make sure the trader is acting on more complete information about the trend and support and resistance levels.

Should I Buy when RSI is oversold?

Investors using RSI generally stick to a couple of simple rules. First, low RSI levels, typically below 30 (red line), indicate oversold conditions—generating a potential buy signal. Conversely, high RSI levels, typically above 70 (green line), indicate overbought conditions—generating a potential sell signal.

Is oversold bullish?

Overbought Explained Overbought refers to a security which has been subject to a persistent upward pressure and that technical analysis suggests is due for a correction. The bullish trend may be due to positive news regarding the underlying company, industry or market in general.