Trading with RSI IndicatorRSI TA
SETUP
1. Start a new layout on Trading View. Call it “RSI TA” to distinguish it from the rest
2. Add only the following indicators:
A) Volume: straight forward, nothing to configure here
B) RSI Candles: Configure it as follows:
Length = 9
UpLevel = 60
DownLevel = 40
Change the Bar Colors to any colors that suit you or keep them as default if you like. I use phosphoric green for 60 (color 0) and phosphoric red for 40 (color 1)
C) RSI Multi Level V3: Configure it as follows:
Length = 9
Style:
Plot ( I chose yellow to distinguish it from my background and the rest)
Level 80 Phosphoric Green (to distinguish it from the regular green candles)
Level 60 Phosphoric Red (to distinguish it from the regular red candles)
Level 50 White ( I use dark mode, so white is visible. Otherwise choose black if you use light mode)
Level 40 Green
Level 20 Red
Disable the rest
READINGS:
1. Use the daily chart, don’t apply it to lower time frames.
In a BULL RUN Market:
- Go long after the close of the first daily phosphoric green candle.
- Continue longing daily phosphoric green candles
- Once the daily candle is no more phosphoric green, exit the trade.
- Go long again when the candle turns phosphoric green.
- Make sure you do not enter/exit a trade before a triggering phosphoric candle.
In a BEAR RUN Market:
- Go short after the close of the first daily phosphoric red candle.
- Continue shorting daily phosphoric red candles
- Once the daily candle is no more phosphoric red, exit the trade.
- Go short again when the candle turns phosphoric red.
- Make sure you do not enter/exit a trade before a triggering phosphoric candle.
Apply the above to previous historical data to get confident about it. Observe how the signals reflect on the RSI Multi Level V3 Indicator at the bottom of the page to get an understanding of how the indicators are getting triggered.
Feel free to paper trade first. And if you are margin trading, make sure you use Stop Losses.
