How to use the RSI indicator for Scalping and Day Trading. For many traders, using the RSI indicator in a day trading strategy is very beneficial. The default RSI setting of 14 periods is suitable for most traders, especially for swing traders.
But some scalpers and intra-day traders use different settings when using the RSI indicator for Scalping and day trading.
They don’t like using the 14 setting, because they find that it generates infrequent trading signals. As a result, some traders choose to lower their time frame, while others opt for setting the RSI period a bit lower to increase the sensitivity of the oscillator.
Some traders deal with this problem by lowering their time-frame. Others lower the RSI period setting to get a more sensitive oscillator.
- Download “TraderVersity-DoubleRSI” (Zip/RAR File).
- Copy mq4 and ex4 files to your Metatrader Directory …/experts/indicators/
- Copy the “TraderVersity-DoubleRSI.tpl” file (template) to your Metatrader Directory …/templates /
- Start or restart your Metatrader Client.
- Select Chart and Timeframe where you want to test your forex system.
- Right-click on your trading chart and hover on “Template”.
- Move right to select “TraderVersity-DoubleRSI” trading system and strategy.
- You will see “Double RSI SCALPING System” is available on your Chart.
- Rule number 1: 14-period RSI above 50 level
- Rule number 2: The 2-period RSI crosses back above the 30 level
- Rule number 1: 14-period RSI below 50 level
- Rule number 2: The 2-period RSI crosses back below the 70 level
Once understood and correctly applied, using the RSI indicator for scalping and day trading will help you develop the ability to indicate whether prices are trending, when a market is overbought or oversold, and the best price to enter or exit a trade.
Best CCI Scalping & Day Trading Strategy – Using the CCI as a trend indicator is ideal when combined with other trend indicators such as moving averages. This can help you to pick bottoms in a rally or tops in a decline. In other words, using the CCI as a trend indicator, you can time your entries within a trend.