How to Trade with RSI Learn with me Episode-1. - YouTube

Hello friends This is Subasish and welcomes to Power of Stock

As I have promised you all that a complete series on RSI will be made

How can we trade in RSI?

The reason for why I am not making videos for the last some days is

Pune class has ended just now. I am busy with other works also.

But yaa I promise whenever I am not able to make videos

After that, you will get value in the content.

I do not make videos for only views and content, as you all know.

Wait for this and we will tell you how to setup RSI

How to position RSI? and many more things I will tell you about RSI.

See every indicator works, keep this in mind.

I am extremely sorry as many people called me

and I was not able to receive many of the calls

But yaa we'll talk in the coming time.

And I am here only

You concentrate a little on the market.

and a little on yourself.

By that, you can learn a lot on your own

I will help them also. Online classes will start soon.

But I will update you with the dates It's not nowadays.

Let's get started with the topic

See, what does RSI mean?

RSI is itself a momentum indicator.

You have to understand this.

What is called momentum?

Like I'l l give you an example.

What's your car's momentum?

So, you will calculate that based on speedometer readings.

The band of the speedometer is 0 to 220(sometimes 330)

A car travels between that much only, It fluctuates between that only

You have to understand that if it goes 60 - 90 Then momentum is more.

If it is around 20 - 30 then, momentum is less.

So, it is the simple thing, remember two levels of RSI

One is 40 other is 60

We'll draw two lines

I will show you some charts how to draw that lines.

Keep this mind, If I tell you when your the car can go at high speed.

Then its simple answer will be

If you drive at speed of 100, then you'll cover the distance at a faster rate.

rather than you drive at speed of 20.

In a similar way, we'll implement this also.

Because RSI tells us the momentum of the stock market.

As I have told you when you drive at speed of 80 you can cover distance fastly.

In a similar manner, If RSI,

If we see in the daily chart, We'll see in the all-time range.

But suppose if in daily chart RSI crosses 60

Then momentum occurs at a faster rate.

What will happen with this?

Any is your set-up Let's say Pile-up is your set-up

And the level of RSI is above 60, then you will be more confident.

Because the momentum of the market is high.

Don't oversell even if it is over 70.

Oversell will work for you when the market will go side-ways.

and the market is trending by nature.

Sideways remains for some time period, but it's difficult to define it.

Rather than, if it goes above 60 then Up-trade, remember these 3 lines

Above 60, Up-trade Below 40, Down-trade

Between 40 and 60, Side-ways market

Remember these 3 things. I will tell you in every video

How to trade by combining Daily chart and Weekly chart

A lot of things to come but remember these 3 lines.

I will tell on the topic Divergence.

All things will take place in the future.

But do remember these things.

You can check right now also

Any of the charts, choose a chart randomly

How the market becomes up-trade after going above 60?

Momentum goes high very rapidly

Whenever the market goes below 40, it becomes down-trade

Then, how range shift takes place?

If it is Up-trade, it doesn't mean that it will stay longer in Up-trade.

It will also Down-trade sometimes

But how will it come down and by which scenario?

How will range shift?

I will tell you all these things.

I hope you're liking this video.

So let's see in the charts, How to apply the concept of RSI?

If you're enjoying the video till now Then, like the video

Stay tuned till the end so that you understand new concepts.

So, we are in the charts Now I will tell you what is the concept of 40 & 60

How you can trade and how you can implement this?

First, know the concept.

How does trading work? Many people learn it on the first day a little bit

They think they have learned a lot about it. and now trading will be easy.

Trading is a very vast concept.

To make a profit, you have to learn by holding.

No one has made money overnight.

If someone has done so, it will not stay longer.

Money will be gone very fast.

If you have made 1 lakh - 10 lakh a very quick period.

And you don't know these things then that money will be going.

So take care, Money is always linear.

This means if you earn money in small parts So I am teaching you.

This is the first part of the video, in the upcoming time 4, 5, 6 also can be it big part.

Slowly slowly, I will tell you the concepts one by one

But how to apply it?

I am thinking that I am starting it at the beginner level. How to apply it?

Many people know how to apply RSI.

It is one of the Sharekhan terminals you can also go and check in Zerodha also.

You will get this option in every terminal.

So that you can change the value.

Like this, RSI by default 70 and 30 remains in terminal

what do you have to do is?

Here you have to change it to 60 and 40. we don't need the middle-end and apply it.

You will get to know here

The line drawn here is for 60.

and here is the line for 40.

I will ask you a question, where is the market right now?

So definitely, it is between 40 & 60 it is in the side-ways market.

You can see clearly that it is in the Side-ways market for sure,

And I have told you a concept how range shift?

Listen carefully because if you understand this it will help you in trading

and in your set-up

Assume it is line for 60

Whenever the market goes above 60, then market is Up-trade

This is 40, 40 is below line

If market is in between 40 & 60 then it Side-ways market.

and if it is below 40 then it is Down-trade.

But there is the word 'Range Shift' Remember this

Now I will tell when range shift

The market is Up-trade and goes above 60, It will not stay up forever, everyone knows.

When market comes down and resist 60 RSI resist 60

then it will be Side-ways to Down-trade.

Keep in mind, that it is not fixed that it down-trade only.

It will be confirmed when it breaks 40.

but the upside momentum is break.

that means if you marked here the position of 60 crossing

When it taking resistance here, then you break its position here you watch for selling stock rather than buying.

Because it is taking resist here.

This is called as Range shift.

If any stock goes below 40, it becomes Down-trade

When RSI will go above 40 take support in this area

Then we will call it a range shift of the market.

the downtrade momentum, it is now side-ways to up-trade.

The momentum in up-trade, it is now side-ways to down-trade

We'll see an opportunity for selling rather than buying.

SO, you might have learned this concept.

If not, then watch the video for 2 to 3 times carefully.

But let's do some for now.

Here marker was above 40.

Marker goes above 60.

See, here it is making Up-trade continously.

Here marker crosses 60 for the first time on this level.

If you see here, crosses 60 at this level.

It is in the 2 to 3 candles.

or in this candle then comes in the Up-trade market.

You can see here also.

How high will it goes, I don't know?

It is a (inaudible) market

As I have told you speedometer.

If it goes above 80 then it can do momentum rapidly.

Same, if it goes above this then it can do momentum rapidly.

See, it has done momentum rapidly.

After this see 40 to 60

From this time period to this.

almost it is making in between 40 & 60 It was a sideways market.

You can see here from this level to this level

there is a Side-ways market continuously

and RSI is also defining that I am in Side-ways.

You will not see every trade this picture-perfect.

There will never be a 100% true strategy.

If someone tells you something like that

Either he is lying or he has invented a new strategy

which I also want to learn if there is such 100% strategy

there is nothing like that, yes some losses will be there

But yaa we can make probability higher by trading

and by modifying the system a little bit.

In coming time I will tell you,

Don't take (inaudible) right now.

By thinking this is down-trade or up-trade

Let's assume if any market or system you already have

If market is above 60 but signal is showing bi

Then you will be confident

but I will make a separate video on how RSI will be trade, then you will understand.

First let's see the chart

like this apollo, here you can see

Crosses Apollo hospital

You are seeing the momentum, it trades for some days with high momentum

This level was between 40 & 60

and see it has been the side-ways market continuously

After this let's see more trade, Let's see Aurora Pharma.

Aurora Pharma is continuously is slightly above the down-trade.

Mean it is inside the sideways market.

It is completely sideways.

It has never become an Up-trade.

Don't thing no losses will be there,

If you say here it crosses 60, its a loss

But till now I haven't told you the trading style

Where to take (inaudible) how to take it?

I don't have told you

You have to neglect this and this is to be neglected.

Assume if your trade is made here, then here also.

and profit from here, and loss from here is nothing.

Always you have to check that, how much profit while profiting

How much loss while losing.

You can see clearly, the concept I have told you

when the market goes above 60 that means it becomes Up-trade.

this came down and after support, it is in up-trade till now

when the market goes down and resist in 60 You can see it resists completely in 60

that means it is now side-ways to down-trade.

This is not 100% sure the up-trade momentum is a range shift

Let's see where is Axis Bank right now.

As you can see in the Axis BAnk there is completely Side-ways market

And RSI is also giving signal

Is between 40 & 60

It is completely in a side-ways market.

Here you can see, it crosses 60 RSI and it gained a momentum of 30-40 Rs.

here also it crosses 60 and you can see the continuos momentum of 30-40 Rs.

So more you see trade

After this, let's see Bajaj Finance

Bajaj Finance is in a continuous side-ways market.

But see when a big trim is established in the market.

You can see the level

from where Up-trade has started.

nearly from 1800, it has risen up to 2900

means it has given a momentum of 1000 points.

and RSI is completely above 60

Many people use a wrong concept called overburn.

or it has been over-soled.

See from the level of 70 it has gone up to 82

and it has touched here near 60 and 70 again & again

If you sell it here, then how much profit you will be able to make.

if you sell at this level then how much profit you will make

If according to the concept if you buy them above 60 then you'll make it

here are some losses it is okay.

Your profit will cover all of your losses.

But I haven't told you the trading style.

Just because keep this in mind,

See here, when the market crosses 40, this is in down-trade

now see how it range shift?

Goes up, tries to take support on 40, then goes up.

Momentum of down-trade is stopped Now, it is becoming side-ways to up-trade

as you can market also becomes up-trade from side-ways slowly.

So RSI will tell many nice rules.

Many nice concepts you'll get.

How will we trade by weekly chart and monthly chart?

But watch this video 2-3 times carefully.

the concept I have taught you so easily you'll not found it anywhere else

keep this in mind Above 60 market becomes Up-trade.

Below 40 market becomes down-trade. this line is for 40.

when the market falls below 60 and resist in 60 then range shift occurs.

From upside to downside

when market crossed 40 from below and takes resist on 40

down-trade was made after breaking 40.

Now taking resist in 40. Mean taking the support.

That means it has shifted from down-trade to Up-trade

So, we'll see the majority of times.

This is the best trading system

If you see weekly chart and daily chart You'll found many nice systems.

Whenever I have told you on the random chart I have taken 2-4 random chart

let's see Balkrishna Industries

you can see, when it crosses 40 continuously

It crosses 40 at this level, after this it is in down-trade completely.

Now, it is range shifting the becoming up-trade

If it crosses 60, the momentum it will make after crossing 60

It can go up rapidly.

and how to find all these and how to do it?

Intra-day, I will prefer positional more in this.

How is positional? How is Divergence?

I will tell all these concepts.

How can you do intra-day also? I will tell you.

But in the upcoming video.

If the video gets more than 400 likes then I will make 2nd part of this

If you loved the video then definitely don't forget to Like and Share.

That's it for today's video. Thank You