Quote from: Maxpips on July 25, 2018, 05:36:53 PM

Quote from: anhchangdeptrai13 on March 26, 2018, 04:36:43 AM

When you are a newbie you can refer to something on tradingview.com
1.Technical:

RSI (Relative Strength Index) (14): RSI <30, oversold => should buy. RSI> 70 - overbought, you should not buy at this time.
Fibonacci: There are Support and Resist. When prices hit the S, P, R levels, the price will rebound, so You pay attention around S, P, R levels.
You should buy (support) and sell (resist) around these areas.

2.Chart:
The result is Bollinger Bands.
You can refer to the Bollinger Bands here: http://stockcharts.com/school/doku.php?id=chart_school:technical_indicators:bollinger_bands

These are just some of the simplest indicators for beginners to trade as they are to have safe levels, avoid losing money.
I am also a newbie sharing knowledge so expect people to help. Thank you for reading Kiss

Some good info Anhchang.

Keep in mind that the RSI being oversold or overbought does not automatically the price is actually overbought or oversold. Lots of times the price will enter the overbought or oversold region and then continue to move in the same direction, e.g if enters the oversold region (below 30) it can keep falling for a long time, even though the RSI is showing it's oversold. So if you buy as soon as it goes below 30 there's a chance the price could continue to fall, meaning you might have to endure some drawn down before it goes back up again, well, if it goes back up again that is. There's no guarantee that it will eventually reverse even if it is oversold, so you could lose all you money if you're not careful, though that's unlikely.

Also, support and resistance levels show where the price COULD reverse, not where it WILL reverse. Simply buying at support and selling at resistance is not a good strategy, mainly because the levels get broken all the time, and there's no way to know which levels are likely to hold before the price gets there.

A better idea is to use the RSI with the support and resistance levels, to confirm whether or not a reversal away from the level is likely to take place.

If you see the price fall to a support level, and the RSI is below 30, that's a better sign the price will rise than simply seeing the price hit a support level on it's own or seeing the RSI drop below 30. It still doesn't mean the price will definitely reverse, but it does make it more likely. Also, seeing the RSI above 70 when the price reaches a resistance level is a stronger sign the price will fall than seeing either on their own.

Hope this helps Anhchange.

This make sense and a good advise

making the proper usage of an RSI not only for an overbought and oversold but the term R and S levels

through that you could possible look at breakup or breakdown levels and a proper entry point and exit point