RSI Indicator and Strategy
The relative strength index (RSI) is one of the widely used momentum indicators or technical indicators in the cryptocurrency market. The trading strategy works by evaluating and indicating the strengths and weaknesses of the crypto asset you are interested in trading.
The RSI strategy majorly indicates whether the asset is overbought or oversold. With these two indications, it becomes easier to predict market trends and trade.
Generaly if RSI value is less than 30, it considers as oversold and if RSI value is greter than 70 it considers as overbought.
Use of RSI Strategy in Trading Bots
Though manual RSI trading is still doing, automated trading is becoming more popular in the cryptocurrency market due to the high volatility nature of this market. Trading bots are increasingly becoming the go-to option among many traders.
Today, you can trade cryptocurrencies automatically with bots using the RSI strategy. Coinner platform offers some of the best Free DCA trading bots that can use the RSI strategy to maximize profit. Read "DCA Trading Strategy And Guide To Create DCA Bot" article to learn more about Coinner DCA bots. You don't have to pay any subscription fee to run DCA bots in Coinner platform. Below are the settings for the RSI strategy in Coinner DCA bot.
To use RSI strategy, you need to select "RSI" as the strategy in settings. Then you can select Time Interval , Limit (number of candles use to calculate RSI value) and Threshold, which is an RSI value that triggers signals. If the RSI value is exiting from the lower threshold range, the "Long bot" will place a buy orders. If the RSI value is exiting from the upper threshold range "Short bot" will place a sell orders.
As a example if the Threshold is set at 30, the lower range is less than 30, and the upper range is greater than 70 (100-30).
You can easily create Free DCA bots in Coinner platform to automate your RSI trading strategy. It doesn't take much time to create a bot and start automated trading in Coinner.
Happy Trading !
Disclaimer: The contents of this article should not consider as financial advice. There is a high-risk associated with cryptocurrency trading. The user must do their own research before investing in cryptocurrencies.
