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RSI Indicator or you can call it Relative Strength Index indicator is a technical analysis tool that helps traders to identify the upcoming trends and reversals. This indicator is very popular and is widely used by traders and investors to find possible buy and sell opportunities. In this article, I will explain you in depth on how you can use RSI indicator on Quotex and how you can place profitable trades using the same.
How to find and set RSI indicator on Quotex trading platform
Setting up the RSI indicator on the Quotex trading platform is very easy and simple. Firstly, log in to your Quotex account. secondly, click on the indicator button and search for the RSI indicator from the list. next, click the name and configure the indicator as per your requirements. once you are done click apply.
How does the Relative Strength Index indicator work on Quotex
Once you have added the RSI indicator on the Quotex chart now you can now easily access the indicator.
This indicator is made from the most important components i.e Overbought Level, Oversold Level, and Moving average line.
Overbought Level: Overbought Level is the price level which displays the complete buyer’s domination is about to end and from here sellers are going to overtake the market. We can say that the market is at an overbought level when the RSI line or the moving average line is near or above line 80.
Oversold level: Similarly, Oversold level is the price level which displays the complete sellers domination is about to end and from here buyers are going to overtake the market. We can say that the market is at an oversold level when the RSI line or the moving average line is near or above line 80.
Moving Average line: This is the most important component of the RSI indicator. the moving average line oscillates or moves around the Overbought and Oversold level which helps the traders to analyse the market. and measure whether the market is bullish or bearish.
How to Trade with RSI Indicator on the Quotex trading platform?
Placing trades using the RSI indicator is very easy you just need to remember the golden rule of the indicator. The golden rule of the RSI indicator is
When the moving average line in the RSI indicator is moving below line 30 it signals an upcoming bullish trend and here you can consider placing a buy-trade for a long time period.
Similarly, When the moving average line in the RSI indicator is moving above line 70 it signals an upcoming bearish trend and here you can consider placing a sell-trade for a long time period.
RSI indicator is one of the most popular trading tools for traders and can give you great results however, As, I have said before no indicator on this earth is full proof and can give you 100% results therefore, you should always combine the indicator some other trend indicators like support and resistance or Stochastic and more.
I will highly suggest you try the above indicator In the Quotex demo account and once you have practiced properly you can shift to Quotex real account and make the real bucks.