Trading Discussion How to trade an upward price breakout with RSI

[theolove2021]

Here is how to trade an upward price breakout with the RSI:

Be sure the main trend is up

Wait for the price to close above a resistance level, a trend line, or any other structure

Check whether the RSI is above the 50 level

Go long if everything aligns

Put a stop loss below the preceding swing low You can ride up the trend with a trailing stop

To your success
Theophilus S.

 

[Setho]

One particular thing that I love with trading using rsi is the fact that it normally gives me a lot of accuracy and it helps me to overcome the dominant strength bias. It does not consider dominant trend whenever you are using this kind of strategy and that makes it very efficient.