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I am Grxxt(🪵,🪵)

Nov 7 • 12 tweets • 8 min read

What is the Relative Strength Index (RSI), and how do you use it?

Developed by J. Welles Wilder in 1978, the Relative Strength Index(RSI) is a momentum oscillator that measures the speed and change of price movements.

#TradingSignals #RSI

🧑‍🏫Let's Learn!

Educational 🧵👇

1/

The RSI is an oscillator with a range from 0 to 100

There are 3 main values of interest:

🔵Below 30 signals that the market is oversold 📉

🔵50 signals neutral 😐

🔵Above 70 signals overbought 📈

2/

The #RSI indicator has been featured in many books and articles over the years. Even though the it was created well before the computer era, it is still a widely used indicator that traders use to determine momentum in any given market.

3/

RSI measures the last 14 periods or candles relative to the time frame you are using.

Like many momentum oscillators, overbought and oversold readings for RSI work best when prices move sideways within a range. $SHIB

4/

This indicator is a lagging indicator. Meaning that it will not indicate a movement in advance. It is best used as a "helper" with other indicators. 💁‍♂️

It is very useful to determine the current momentum of the market rather than using it as a predictive tool.

5/

However, it is easy to understand when the market's momentum is bullish or bearish.

When both the RSI line and the moving average are above 50, the market momentum is #bullish.

When both lines are under, the momentum is bearish.
$QQQ

6/

#Trendlines can be drawn on the #RSI to determine direction. ↕️

While the RSI is a lagging indicator, it can be a leading indicator if there is a discrepancy between the trend of the RSI, and the trend of the price action.

This is called DIVERGENCE🙂
#Bitcoin #Crypto

7/

There are two types of divergence. Bullish and bearish.

If the trend of the RSI is trending up, and the price action of the market is trending down, this is bullish divergence, and can signal the bottom of a market.
#NASDAQ100 $QQQ

8/

If the trend of the RSI is trending down, and the price action of the market is trending up, this is bearish divergence, and can signal the top of a market.
#BITCOIN $BTC

9/

The RSI is just one tool we can use to make better investments or trades. Others include but are not limited to:

🔵Moving Averages(MA's or EMA's)
🔵Support and Resistance
🔵Trendlines
🔵Fib Retracement Tools
🔵And more

$LINK #charts

10/

If you'd like to go deeper into the world of #TechnicalAnalysis and become a better #Trader and #investor , join my Discord and learn in real time!

Invest in yourself!🫰

You can watch the video about that and sign up here for less than $4 a week!
launchpass.com/defi-dojo1/ta-…

11/

If you found this valuable and others could benefit from it, go like and retweet the very first Tweet.👆

Thanks for reading!
#Groot

12/

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I am Grxxt(🪵,🪵)

@IamGrxxt

Aug 6

Risk Management is the most important factor in trading, and MUST be at the core of your trading strategy. If you made a ton of money in 2021, and then lost 80% of it in 2022 so far, you're not going to be a trader for very long.

How to create your own risk management plan:
🧵👇

1. Come up with a set amount that you want to allocate for long term investing, and an amount for short term trading. Long term should heavily outweigh your short term trading. For example, 80% long term investing, and 20% for short term trading. Keep these accounts separate.

1a. For long term investing, you should be using high time frame charts ONLY when deciding to buy/sell. The charts can give great indications of these buy/sell signals.

Decide how much for one asset, and scale in/out with multiple buys/sells over time. This is called averaging.

Read 16 tweets

I am Grxxt(🪵,🪵)

@IamGrxxt

Jul 7

How can we know if a correction, or bear market, has ended? In this thread I'll go over the previous correction from March 2020, and how it can help us with our current market.

A✅list of things to look for to confirm a recovery has started.
$SPX $SPY $ES $BTC $ETH
🧵👇

First, how do we know the bear market is continuing? Well the obvious answer is $SPX makes a lower low breaking $3636.87. Because every market recovery starts with a low that remains the low.

How do we know if a correction/bear market has ended?
1. A failure to break that same level: $3636.87

2. A rally that retraces 38.2-61.8% towards the previous high($4,177 current market)

Read 9 tweets

I am Grxxt(🪵,🪵)

@IamGrxxt

Jul 7

$BTC and $ETH have managed to stay above the 8EMA for three whole days. That's awesome. Sitting in between the 8/21 however means "Wait and see". It's progress, but we aren't there yet. A confirmed 8/21 cross is what we want. ALT's may be a different story.
More below👇

If we get that 8/21, #Bitcoin still needs to get through numerous downtrends, and they're really far away. There is a CME gap above, which tend to become magnets. This is a potential target, IF, we get a reversal confirmed to the upside.

$SOL is back above the 8/21. But lagging somewhat today compared to BTC/ETH. I can see a move up to the top here. If that happens, indicators should be saying BUY, and it will be attempt #2 to long on SOL.

Read 4 tweets

I am Grxxt(🪵,🪵)

@IamGrxxt

Jul 6

$ETH look at this little guy! Let's keep it going!

$BTC you still have some work to do.

ETH has made it to the 21EMA on the daily. BTC approaching. Safe to say we get our 3 daily closes over the 8EMA unless something catastrophic happens in the next 45 min
#Bitcoin #Ethereum

$ETH hasn't touched it's 21 EMA since May 5th. We may have the beginning of something here.

Now hold on, because it still could just be a bigger triangle, I don't have much to draw this top line with yet.

Read 4 tweets

I am Grxxt(🪵,🪵)

@IamGrxxt

Jul 5

Weekly look ahead: $BTC making the same pattern over and over again. You keep doing the same thing and buying the dip expecting different results? That's the definition of insanity. Come join us in Defi Dojo(Link in my bio), we will be ready when it's time to buy.
#BTC #Bitcoin

$NQ $QQQ still above the mid line in this falling wedge on the daily. This pattern is bullish, however there's still plenty of room below it. With CPI data on July 13th I expect volatility leading into that.

$ES $SPY rejecting pivot and the EMA's still. Same story here with plenty of room down possible. No buy signals anywhere on higher time frames.

Read 5 tweets

I am Grxxt(🪵,🪵)

@IamGrxxt

Jun 27

7 Tips Every Trader Should Know✊

Whether you're a🐂or a🐻, everyone should have their own set of rules to follow. You're trading plan is your guide to success. Here are 7 tips I've learned to live by, and you should too. #Bitcoin #SPY #ETH #Crypto
🧵👇

1. Establish a plan!💯

Plan your trades carefully before you enter a position. This means having the price you want to enter, a stop loss, and a take profit zone BEFORE you enter a position. If you aren't doing this, you're probably losing money.💸

2. Protect your capital!🪙

Cut losses quickly. Don't hold and hope, it will 9/10 create bigger losses. If you're plan says to cut at 5% loss, cut it without exceptions, EVERYTIME!

Here's a chart that shows what it would take to recover funds at certain levels of loss.

Read 9 tweets

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