Most of the traders are willing to trade by Free Forex Signals or sometimes paid. It is very unfortunate that most of the traders don’t want to learn the basics of Forex. Very few traders go for Forex Learning, learn something but never implement it on trade. Therefore, they cannot earn a profit from Forex. The best way to earn something by Forex Signals is to take the signals, check the signal in your system and if it is the same in your system, go for it and it is very easy to identify some signals by using RSI indicator.
Today, we are going to talk about one of the popular chart indicator RSI. It is very unfortunate that most of the traders don’t know the abbreviation of RSI. RSI’s full form is the Relative Strength Index which was developed by one of the popular technical analysts J. Welles Wilder. RSI indicator helps traders to evaluate the strength of the market whether it is oversold or overbought.
The indicator normally placed at the bottom of the chart in a separate horizontal window. RSI indicator scaled from 0-100. The area is also separated into three primary zones which indicate the oversold area, overbought area and neutral area.
- 00-30: Oversold Area
- 30-70: Neutral Area
- 70-100: Overbought Area.