Beginner Guide to the RSI Indicator

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  • Опубликовано: 28 ноя 2024

Комментарии • 605

  • @cheesy888au
    @cheesy888au 6 лет назад +192

    Thank you. You’re one of the few you tubers who can explain things simply and you have helped me immensely.

  • @ronaldsimmons7316
    @ronaldsimmons7316 3 года назад +524

    I use my age-old Murphy's Law Trade formula: Whenever I buy a stock, it always goes down. When I sell it, it always goes up. It never fails.

    • @kobepower
      @kobepower 3 года назад +47

      that means ur timing is off. so look at what time u buy and take 30 mins to wait i been there

    • @szbmedia
      @szbmedia 2 года назад +2

      Brilliant 🤣

    • @76biggdogg
      @76biggdogg 2 года назад +12

      Just do the opposite of your initial plan .... Easy peasy, lol .... Jk of course

    • @76biggdogg
      @76biggdogg 2 года назад +6

      You are most likely trading against the bigger trend.

    • @NxGDE50MErK
      @NxGDE50MErK 2 года назад +7

      Whelp, when you take a trade get a loved one to do the opposite, I'm sure they'll thank you when they're rich 🤑

  • @MrPangulo007
    @MrPangulo007 5 лет назад +436

    "you have to be patient,(which is a problem for all of us)" true that.

  • @prokter8bp669
    @prokter8bp669 2 года назад +17

    5 years after this video is posted and still so relevant. im new to trading and ive learnt so much from your videos. David your a top teacher. Thanks

    • @Rios101
      @Rios101 2 года назад +1

      Facts!!! Also relatively new to trading. And it isn't easy as it seems

  • @kenbridgeman8590
    @kenbridgeman8590 4 года назад +3

    So nice to have somebody TALK to us instead of yelling at us. Really like your communication style. Thanks!

  • @GianniGirolamiJiening
    @GianniGirolamiJiening 4 года назад +48

    really like David's introduction of the "divergence" part and the use of several lows as reference for a stop-loss. very valuable!

  • @BruceWangOfficial
    @BruceWangOfficial 5 лет назад +98

    I’ve prob made the most profits from RSI. Thanks for the tip about bullish/bearish divergence. Will look out for that!

    • @brendangolledge8312
      @brendangolledge8312 4 года назад +6

      Really? What asset and what strategy? I looked at the history of rsi vs price movements on bitcoin and found that it was essentially correct on the scale of weeks, but as good at flipping a coin in the scale of years. I was thinking from this that it shouldn't be used for anything apart from judging the timing on markets that you already want to enter/exit.

  • @mr.everything183
    @mr.everything183 4 года назад +5

    Had no idea about this divergence thing, but I went and looked at some old investments, and wow. It’s so clear now.

  • @fitnesslibrarian9013
    @fitnesslibrarian9013 6 лет назад +26

    My god. I’ve just been obsessed with trading lately. These videos are the best I have found. You are a gem. Thank you for getting me even more balls deep into this subject.

    • @TheHannible
      @TheHannible 6 лет назад +3

      Did you start trading P? If so how are you doing I am still reading reading reading!

    • @ch3ckm8
      @ch3ckm8 6 лет назад +6

      Learning RSI is definitely essential for trading. Probably the easiest and most reliable indicator in existence.

    • @markassbrownlee2739
      @markassbrownlee2739 5 лет назад +1

      Remembering 1992 what about swing trading?

  • @alexs555
    @alexs555 3 года назад +3

    Still watching and learning in 2021. Thank you for your hard work putting the videos online!

  • @abhishelke123
    @abhishelke123 5 лет назад +8

    Man let me thank you as setting of 10 periods for RSI has made all the difference for me.

  • @integer22
    @integer22 3 года назад +17

    This series is so good, by far the best I've found on RUclips. Great work David, you're a brilliant presenter and educator and it is very much appreciated. The quality of these videos far exceeds what I'd expect for a free RUclips series, thank you!

  • @PonteRyuurui
    @PonteRyuurui 3 года назад

    this channel is pure gold

  • @nflbestfootballclipsever9138
    @nflbestfootballclipsever9138 3 года назад +1

    I'm glad I found your station on RUclips. You have quite the calm demeanor when you teach. What a great guide to the RSI

  • @crazyyutober1150
    @crazyyutober1150 5 лет назад +3

    You are the best. I try the MACD and RSI with my DEMO account, and you are 100% right!

  • @rolexrakes5290
    @rolexrakes5290 4 года назад +1

    very good presenting, clear, concise, to the point, does not over labour points or drone on, relaxed consistent approach. Thanks for doing what you do well! Really helps.

  • @Andrew-yl7lm
    @Andrew-yl7lm 4 года назад +3

    Good video as always, been using 212 for almost a year and I've had success following advice and tips from these. Really good job guys, thanks.

  • @dub_tim
    @dub_tim 3 года назад +1

    a mathematical and a simple explanation. gave me a good insight in the RSI area

  • @hashemfathi1646
    @hashemfathi1646 4 года назад

    Thank you for putting your videos without any stupied commercials

  • @bakr0x
    @bakr0x 4 месяца назад +1

    love this, probably the best rsi explanation content I've seen so far. thanks man

  • @sasidharanpillai4285
    @sasidharanpillai4285 7 лет назад +1

    you are explaining in simple terms and newly known about divergence , thank you sir

  • @darinwade7768
    @darinwade7768 5 лет назад +20

    Excellent overview I learned fast on this one..RSI are great for determining how long a sell trend will last, thanks you for teaching RSI in a less complicated view, thank you the background charts are visible and always say what studies and indicators your using big thank you..

  • @TopJoo7
    @TopJoo7 7 лет назад +134

    Today, I understood what a bearish divergence is, thank you kind sir.

    • @July-A7
      @July-A7 7 лет назад +1

      There's no such thing as divergence that shows direction afterwards. It may go up just as well as down. Don't rely on divergences.

    • @LifeSuxAss637
      @LifeSuxAss637 6 лет назад +7

      thats any indicator or signal lol

    • @jaeprince6080
      @jaeprince6080 6 лет назад

      lmao

    • @moons4768
      @moons4768 6 лет назад +1

      Lol. RSI divergence is everything.

    • @tr4gik11
      @tr4gik11 5 лет назад

      @@July-A7 Its just an indicator Son like all indicators it does not predict 100% move on market , nothing does.

  • @alireza4734
    @alireza4734 5 лет назад +4

    Your explanation is fantastic. You teach everything in a very good clear way but I highly recommend you to try to use Word or something like that for writing formulas and notes. Thanks a lot David.

  • @hareshadvani3543
    @hareshadvani3543 2 года назад +1

    Thank you. You have explained things in a very simple and concise way. I have seen so many videos of other channels, I do not understand. find the concepts complicated, leave it half way...You have explained it so well, I cannot believe it could be explained in such a simple, to the point manner. Thank you again. Keep up the good work.

  • @MrMichaelBPedersen
    @MrMichaelBPedersen 6 лет назад +17

    This is some great advice, loving the in depth explanation and tips, rather then just talking simple signals.

  • @ktxed
    @ktxed 6 лет назад +472

    judging by his writing I suspect the guy was an MD before he was a trader

  • @labjujube
    @labjujube 6 лет назад +36

    very helpful! I just found that WMT had a bullish divergence at 02/05/18 and 02/09/18... Might have made a profit if have seen this video earlier!

  • @TheConsciousParentingShow
    @TheConsciousParentingShow 2 года назад +1

    This was really simple and easy to understand. Thanks David.

  • @joeybaez1745
    @joeybaez1745 6 лет назад +4

    LOVE THE WAY YOU EXPLAIN THINGS, VERY UNDERSTANDING. THANK YOU SO MUCH DAVID

  • @chemistryinaction5788
    @chemistryinaction5788 4 года назад +1

    I gave you double like, a very easy explanation

  • @idbountyhunter
    @idbountyhunter 6 лет назад +3

    One of the best explanation that I have seen, thank you for your time in making this video.

  • @lugombear2269
    @lugombear2269 2 года назад

    Good point on RSI is that you can find divergence on different timeframe. So if you dont see in D1, check H4, or H1 and you can find divergence there. That way is more sensible. For sure if you find divergence in D1 or H4 is more stronger and good confidence to go into trade.

  • @TomyBach
    @TomyBach 4 года назад +3

    Thank you for explanation of this oscillator ❤️ Helped me a lot

  • @himynameisjc91
    @himynameisjc91 4 года назад +1

    This video was very helpful. Thanks

  • @ZukeTiki
    @ZukeTiki 4 года назад

    Awesome video.. i had to figuer it out on my own.. p.s. the 4 hour chart is the best one to fallow.. if the weekly chart agrees with the 4 hour chart to buy buy buy then brother you better buy in. But then you have to wait and only sell when you are at your highest point.. not by the end of the day like most people want. It takes weeks even a year sometimes to hit to roof.. a 100 dollar investment can net you thousands though in the right spot. Bravo on this video for explaining it very well

  • @climberly
    @climberly 6 лет назад +16

    Awesome video! It really helps. Keep up the good work!

  • @RajendranChinnaveeran
    @RajendranChinnaveeran 4 года назад

    Very simple way clearly explained about RSI. Thanks.

  • @awaken8282
    @awaken8282 4 года назад +1

    Thanks, easy to understand

  • @TH120455
    @TH120455 4 года назад +2

    Excellent as usual. thanks

  • @onsitelr3692
    @onsitelr3692 4 года назад +1

    I love your videos, you honestly explain everything so simply yet with so much detail I really appreciate your knowledge! Thank you!

  • @PeterDful
    @PeterDful 4 года назад

    Thanks David for your contribution We all need to start somewhere. Ignore the dislikes,

  • @stevenmccarthy794
    @stevenmccarthy794 6 лет назад +4

    Thank you, you explained it so simply and so clearly. Very helpful. This is the first of your videos I have seen but I will be looking at some more. Thank you.

  • @ScottWilder
    @ScottWilder 5 лет назад

    Great explanation of bullish and bearish divergence.

  • @jo8422
    @jo8422 3 года назад

    Nicely and calmly explained

  • @rachelclements1555
    @rachelclements1555 3 года назад

    Dude, you are a legend. Thank you for this.

  • @ImChickenLittle
    @ImChickenLittle 4 года назад +7

    The Correct formula
    Rsi = 100 - [ 100/ (rs + 1)]

  • @neonether
    @neonether 6 лет назад +62

    For those doing the math, here's the CORRECT formula: RSI= 100-[100/(RS+1)]
    Using the formula in the video will yield an irrelevant value.

    • @MelodySorrow
      @MelodySorrow 5 лет назад +5

      I thoght the equation doesnt make sense. Thanks for the correction

    • @talaltaher1442
      @talaltaher1442 5 лет назад

      Thanks for correcting

    • @surendharp2101
      @surendharp2101 4 года назад

      😂Lol

    • @joshuadavid4756
      @joshuadavid4756 4 года назад

      Open your eyes and see.....
      Ahm just wanna say it's a minus not plus, he mentioned the maths guys so other people shouldn't buzz around

    • @johnsnow9348
      @johnsnow9348 4 года назад +4

      The formula showed in the video is also correct. (1+RS) or (1-RS) in the denominator is just an adjustment to convert relative strength (RS) into the index from 1 to 100 when relative RS goes to the infinity.( i.e. moving average of the downtrend goes to zero).

  • @nerdkeyboard
    @nerdkeyboard 5 лет назад +3

    Thank you, Sir. You have done a wonderful job in explaining the RSI. This has truly helped me.

  • @samsaleh3447
    @samsaleh3447 2 года назад

    Excellent explanation of RSI 👍🏻

  • @WiilliConCarne96
    @WiilliConCarne96 3 года назад +2

    The formula displayed for RSI was slightly incorrect:
    He wrote RSI = 100 - (100 / (100 - RS)) where as it should be RSI = 100 - (100 / (100 + RS)).

  • @D215293
    @D215293 4 года назад +1

    Excellent Video, very helpful

  • @chrisjones2625
    @chrisjones2625 4 года назад +1

    Thanks, very helpful

  • @tmlpgm
    @tmlpgm 7 месяцев назад

    Nice explanation, just used it and it's really relative... Thanks!

  • @darkblueturbo
    @darkblueturbo 6 лет назад

    I saw this an hour too late. Made a trade at lunchtime using exponential moving averages and have been trying to figure out why the stock I bought has gone down instead of up. Using this RSI technique I have my answer. Shame I didn’t watch it this morning :(. Thank you though.

  • @AriffAffendi
    @AriffAffendi 7 лет назад +2

    been subscribed to you,Sir since early this year. and start training Divergence for the past 3 months now.
    EURJPY H4 blips.... time to go short.

  • @deborahshields5555
    @deborahshields5555 4 года назад

    Excellent session - The Divergence is an awesome tip. Need to get the sharp eyes for the money!

  • @jimreeves26
    @jimreeves26 6 лет назад

    Sir after seeing your video of rsi. I making profit past 3 days .I.use rsi
    Current market updates .using top gainers end losser .I'm doing profit

  • @thesidehustlecrew6533
    @thesidehustlecrew6533 4 года назад +1

    Simple and lucid explanation of the concept. Thanks a ton!

  • @BillyReedMusic
    @BillyReedMusic 4 года назад +1

    Thanks, David! Great info!

  • @MrMathsimon
    @MrMathsimon 3 года назад

    You explain things so easily. Subscribed!

  • @janweidenbach4208
    @janweidenbach4208 2 года назад +2

    Understanding the concept of crypto is of great importance. Many had ventured into it blindly and today crying foul.

    • @jessicawiley3136
      @jessicawiley3136 2 года назад

      Sorry for writing you, just out of curiosity your page come up on my suggested friend lists so I was just wondering if I knew you from somewhere?

  • @MrMarcoAlvarado
    @MrMarcoAlvarado 3 месяца назад

    Hello, very good video. What is the difference between the RSI 14 and RSI 10 and for which timeframes can they be used?

  • @r_m5545
    @r_m5545 4 года назад +1

    Thanks a lot sir for this informative video..

  • @ahhmrbond
    @ahhmrbond 6 лет назад +6

    Really fantastic video yet again. Thank you.

  • @salehmir9205
    @salehmir9205 5 лет назад

    finally someone explained the formula understandable for humans

  • @wren6o
    @wren6o 5 лет назад +17

    The formula is wrong. It should be 100-100/(1+rs)

  • @RanaWinckler
    @RanaWinckler Год назад

    Your work is just incredible! Thank you for it

  • @SaltwaterOutlaw
    @SaltwaterOutlaw 4 года назад +1

    Great job explaining the concept, look forward to checking out some more of your videos.

  • @jeankenissan1528
    @jeankenissan1528 6 лет назад

    I'm on a david jones/trading 212 marathon and watching all the videos from the start of this channel. Really really good info and this was one of the best videos for me!
    If we have 6 days where market gains 10 points and 4 days where market drops 10 points for example our RS would be (60/10 ) / (-40/10)= 6/-4 = -1.5 and our RSI would be 100 - (100/ (1 - -1.5))= 100 - 40 = 60. Is that correct?

  • @phoenix89naca12
    @phoenix89naca12 9 месяцев назад

    What do you think about adding one more indicatior, to help i.e. The Volume Profile Indicator?

  • @deynna45
    @deynna45 4 года назад

    Wow this is great I was trading off volume as a new trader, I feel like I can do so much better now, great video

  • @itzradianttv7536
    @itzradianttv7536 5 лет назад +2

    Great and informative. have always wanted to know more about RSI I see. Thanks, David!

  • @theguynextdoor3735
    @theguynextdoor3735 3 года назад

    Very informative for a very very noob like me. Thanks

  • @MFXCenter786
    @MFXCenter786 4 года назад

    Great video and everything to know about RSI indicator. Thanks a lot

  • @lu8364
    @lu8364 4 года назад +1

    Thank you! I like using RSI too.

  • @vivrd
    @vivrd 3 года назад

    This is AWESOME!!! Thank you sooooooo very much. Most crisp explanation. Thanks.

  • @Flanknodger
    @Flanknodger Год назад

    Thanks. I was able to easily follow your explanation.

  • @stoneyj1a1
    @stoneyj1a1 Год назад

    Good explanation, i learned something new. I've never had much luck with RSI so maybe this will help.

  • @mentormuller8929
    @mentormuller8929 2 года назад

    Thanks for this simple explanation!

  • @rehanzamindar6533
    @rehanzamindar6533 6 лет назад

    Once you spot divergence also see if price has struggled in recent past to make lows/highs. Check how deep were the earlier retracements . Deeper retracements just before the divergences are better winners.
    Then enter on lower low or higher candle...

  • @GhulamMustafa-zs6xt
    @GhulamMustafa-zs6xt 2 года назад

    A great work out by you thank you very much please explain how to buy and sell by RSI indication, on what percentage we should buy and on what percentage we should sell. and between what percentage we should stop buying and selling,

  • @Storytelling35
    @Storytelling35 2 года назад

    Thanks mixed with three ema and ema right now just starting out

  • @ALWAYSABOUTINDIANSHARESAAIS
    @ALWAYSABOUTINDIANSHARESAAIS 5 лет назад +1

    what a video sir...love from india

  • @stevenpaul4394
    @stevenpaul4394 2 года назад +1

    Putting our time and effort in activities and investments that will yield a profitable return in the future is what we should be aiming for. Success depends on the actions or steps you take to achieve it

  • @divinesamadhi6039
    @divinesamadhi6039 4 года назад

    Thanks David Jones the Video was helpfull to study RSI more deeply

  • @peruzfinest07
    @peruzfinest07 3 года назад

    What an awesome video!! I love your channel!! Liked and subscribed!

  • @ArnoldsDesign
    @ArnoldsDesign 3 года назад

    Could you use the RSI as a momentum indicator?

  • @dedwardmalick
    @dedwardmalick 4 года назад

    Great video...Thanks for sharing.

  • @joshuajohnson9223
    @joshuajohnson9223 3 года назад

    Thanks for a simple explanation.

  • @masudulalam4855
    @masudulalam4855 4 года назад

    Thanks, subscribed. From Bangladesh

  • @valentinacarrizo7266
    @valentinacarrizo7266 2 года назад

    Hi, what´s the difference between a RSI6 and RSI10 or another number? Thank you for your videos

  • @bridges174
    @bridges174 6 лет назад +2

    I appreciate this video and your teaching style, good stuff.

  • @WheelerRickRambles
    @WheelerRickRambles 3 года назад

    Thank you! Thank you! ...from Rick in AZ!👍😀👍😀

  • @joefranks5526
    @joefranks5526 3 года назад

    Easy on the ears. Got it. Thanks

  • @sebastiancastillo6044
    @sebastiancastillo6044 3 года назад

    Great explanation. Thanks!

  • @lakumg1825
    @lakumg1825 4 года назад

    It was a good one. Kindly suggest which other indicator can be used along with RSI for effective prediction

  • @alimertaydn1699
    @alimertaydn1699 3 года назад

    Thank you very explaining better and made easier

  • @marekboguszewiczPM
    @marekboguszewiczPM 6 лет назад +3

    Very well presented , I’ve worked in trading floors myself to more in trading systems technology management, but have to say very precise and clear ...