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RSI Trading Strategy
3:12 · 8 chapters · Forex lessons, part 58
What you'll learn
RSI at 70 isn't an automatic sell. Here's how to use the 50 line and divergence instead, with confirmation and a stop.
Go further with our written guide on this topic, browse all the free Learn Forex lessons, or check today's market in our forex news.
- Key point 1
- What RSI measures and what 70, 50 and 30 mean
- Key point 2
- Three ways to trade it: ranges, the 50 line and divergence
- Key point 3
- Regular vs hidden divergence, and why you wait for confirmation
- Key point 4
- A worked EUR/USD pullback example (illustrative)
- Key point 5
- Which RSI settings to use, and what RSI cannot do
Rules and limits from regulators and official sources; every price, account and chart in the video is an example. Education, not financial advice.
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The video is presented by an animated host with a computer-generated voice; the research and checks are by the FX Recap team. Risk warning: forex and CFD trading carries a high risk of losing money because of leverage, and most retail accounts lose money. This is education and review, not financial advice. FX Recap may earn a commission from some broker links; see our affiliate disclosure.