Master the art of using Relative Strength Index (RSI) Indicator on Deriv

Deriv is one of the most popular trading platforms. They offer numerous trend indicators and one of them is RSI or you can call it Relative Strength Index.

RSI Indicator Basics

The Relative Strength Index is a trend indicator that is mostly used to find upcoming trends & reversals. The default period for the indicator is 14 days which is mostly used in long time frame charts. You can even use this indicator for current trends & reversals you just need to make some tweaks & changes and reduce the indicator period.

Talking about the components of indicators, this indicator uses a moving average line that oscillates around line 0-100 when you see the reading near line 30 it signals an oversold level vice versa when you see the reading near line 70 it signals an overbought level.

 

How to add RSI Indicator on the Deriv chart?

In order to add an RSI indicator on the Deriv chart, Login to your Deriv account first. Secondly, set your default chart as Candlestick from the middle left of the chart. Next, click on the currency button and select the desired currency you want to trade. Lastly, click on the indicator and search for the RSI indicator and click the name. Now, make necessary amendments on indicators like period, and line colour as per your trading nature and once you are done click apply.

How to trade with RSI Indicator on Deriv?

 

 

Placing calls with RSI Indicator is pretty simple and easy. when the moving average in the RSI indicator is oscillating near line 30 it signals an upcoming bullish trend and you can place a buy trade here.

 

 

 

Conversely, when the moving average in the RSI indicator is oscillating near line 70 it signals an upcoming bearish trend and you can place a sell trade here

 

How to deal with RSI Indicator Divergence

 

 

Multiple times while accessing the indicator you will notice that the RSI line and Price are not moving in an equivalent direction. This usually happens due to market fluctuations. In such circumstances, you should wait for a clear trend and place trades accordingly.

The best thing you can do is try the RSI Indicator on the Deriv demo account and once you have practised it properly you can shift to Deriv real account.

 

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