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RSI Intraday Strategy | Anish Singh Thakur | Best Indicator for Intraday | BomingBulls - YouTube
Channel: Booming Bulls
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[Music]
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Hello guys! My name is
Anish Singh Thakur. And
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today we are going to
discuss about RSI Indicator,
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Relative Strength Index. If you have
never heard this name before this ever,
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so definitely watch this video
until then because, maybe
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you start understanding it,
you gain interest in this thing.
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And if you are already using RSI, you should
also watch this, because I am pretty sure
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this video will add simplicity
to your trading style.
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Now we should start the video, but
I have very important news for you,
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which, when, I will meet you again at the
end of this video and will share with you
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regarding my next important video.
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So, see you there.
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Alright guys. So, in
order to use RSI, firstly
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we will come on this
website, www.tradingview.com
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This is the best starting
website that I use.
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This page which you can see
here now, there is nothing here. As
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you can see so much of complication
over here, just ignore all that.
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Then, this search box which
is over here, click on that.
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Type down any share name. Let's say
we guys write SBI. So we will write SBIN
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and we will click. Alright.
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Now this next page which has
come up, even this is of no use for us.
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This point which you
can see over here "Full
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Featured Chart", you have to click on it.
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Once you click there,
you will reach on this page.
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Guys we will use the
time frame of five minutes.
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When we click here, it asks the time frame.
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Which means every
candle is of five minutes.
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Since it is intraday, that's
why pure, I am telling you
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the pure intraday video.
This study works only intraday
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the way in which we will use this.
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So, we will always set it
to five minutes for intraday.
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And we will click here.
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Can you see this at the top, fx or
indicators would be written on your computer.
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Click on this. Write RSI here.
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Look, many types of RSIs will come,
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stochastic RSI, nothing.
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The simple relative strength index
which is there, we will click on it.
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Absolutely.
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And, alright, let's start this video now.
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[Music]
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Let's start with relative strength index.
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This is relative strength index.
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I click on this.
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It has opened.
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Then I click on the bar.
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RSI is plotted.
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Now, a graph which is made at the bottom
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Okay, look, whenever,
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What do you feel when
you look at this graph.
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Do you feel scared,
since you are seeing it for the first time
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Like what is this, how does it work.
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It's nothing much.
First of all come here and see
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there are four options, to close,
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to write the code, you
don't have to write it ever.
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You don't need to see the source code.
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Settings and closing and starting.
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Come on setting, click on setting.
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By seeing the setting,
you come to know that
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what all things are there in this.
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First of all come on Input.
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At input, leave the resolution as it is,
leave the length as it is,
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leave the source as it is.
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Don't touch the default settings at all.
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of inputs.
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Leave it like that.
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If you have to do it, I will tell you.
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Over here see what
is the source written as.
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Open, high, low, close,
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high low 2, high low close 3,
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open high low close 3,
volume volume moving average.
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What is the most important,
ohlc, which I read out for you here.
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What is the most important thing in ohlc.
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Closing is always the most important.
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Ask me any question whenever you wish to.
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Or if you are in doubt and thinking that
what price should I see.
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Closing is the most important because it
is on that on which the market has closed,
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so, or the candle has closed.
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It is set on close.
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Move to style.
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What is this in style,
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Look at the back here,
there is a zone here.
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There is a zone from zero to hundred.
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And there is one more zone of
pink colour in the middle, it is a band.
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There is a band of pink colour.
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This is asking the colour of that.
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We will make it green.
Orange, sorry, that is the colour of RSI.
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So, for that, you can
keep which colour you like.
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There is no problem.
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Before this I think it was in this colour.
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Let is be like that only.
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Now this is the background colour. If
you want to make the background blue,
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make it blue,
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Do whichever you like.
Do red if you want to do red.
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According to me, leave it as
it is the way it is already set.
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Okay. When you move to style,
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Then there is one upper band here,
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and there is a lower band. Upper
band means upper height, lower height.
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Right now on your laptop,
it is set as 70-30.
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That's how it is set right now in yours.
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Okay? It is set as 70-30 in yours.
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What you will do to that,
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You will change it to 60-40
in order to work on shorter timeframes.
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60, 40.
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When you come here, save it as default
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and you will click OK. So,
it will become 60-40 forever.
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Okay?
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So, 70, 30, these numbers which are there,
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you have to change those
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and you have to make it 60 and 40.
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Click OK.
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And we are done. Okay.
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Have you understood till here,
what did you do in Settings.
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We have changed the setting of only
the band. We changed 70-30 to 60-40.
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IN 7030 it was a bit above, this
one, this would have been here
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and this would have been here.
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That's how it would have been.
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Okay guys, it's clear to everyone?
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Done.
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Let's move ahead now.
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Now, what is the role of this, what is
the meaning of relative strength index.
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Relative strength index.
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There is one word associated
within it's name itself, strength.
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What, relative strength
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index means something meant to tell.
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It tells. So, what does it tell.
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This tells the strength
of the market, okay?
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This tells you in market, of,
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I would like to use the word momentum.
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This is our momentum indicator.
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What does momentum indicator
mean? Momentum indicator means
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Momentum indicator, if power
of uptrend comes in stock
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there is a momentum which comes in that.
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Then where will it go? It will go up.
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If bearish momentum comes,
where will it go? It will go down.
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So that's what it is.
What RSI tells is that
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Whenever the value of RSI,
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I am teaching you with the purpose of giving you knowledge.
So, now, you,
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Whenever the value of RSI crosses 60.
Look, it has crossed 60,
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It crossed here right? Look,
even here it couldn't cross 60.
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Even here it couldn't cross 60
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If it cross 60 with momentum
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the market trends towards the uppser side.
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Okay.
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Did you see? The market
came, it took a slight pull back
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Now it came up, it took pull back, it took
support, resistance, this was resistance
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It took the support, it gave the target.
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Okay?
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This means that if RSI becomes 60 plus,
then we consider it to be bullish.
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And if RSI dips below 40,
what do we consider that.
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Look, RSI has dipped below 40 over here.
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The moment RSI dips below 40 over here,
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market becomes bearish.
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You guys saw that, okay.
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Did you guys understand this much?
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What does RSI mean?
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RSI tells you the momentum.
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And when 60 plus it goes bullish,
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40 minus it goes bearish,
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60-40, it's in range.
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It's in no trading range.
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Everyone clear with this?
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If I teach you more deeply, if I
explain you more deeply with an exaple.
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Look, how is a train like? The train runs,
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and it has coaches fit behind it,
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and the train runs and
runs and runs and runs.
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The train runs at speed.
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When a train halts at any station,
then very heavy brakes are applied.
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Engine is shut for sure.
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Even if only brakes are
applied, is the train able to stop?
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When the train stops, then even after
stopping, does it go a little bit forward.
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Have you seen that phenomena,
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It moves slowly that way right.
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Even after applying the brakes.
Why, why does that happen?
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Why this happens.
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What exactly is happening over there.
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What is the scientific reason for that.
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Momentum.
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It's called momentum.
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There is so much moomentum
that even if you apply the brake,
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then also you move forward.
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Similarly, let's say that
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If Rsi becomes 60 plus, a
momentum comes in stock.
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The stock is not able
to stop from the front.
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If it dips to 40 minus, it's
not able to stop and it falls.
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Definition wise also I think
you guys must have understood
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that what is the meaning of RSI. Okay.
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Now let's see more examples of this.
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Let's see at which time frame will it work.
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Let us see examples
of how all will it work.
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Alright, let's see further
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and let's check. Okay.
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If RSI, if RSI takes a
rejection from this point
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On taking rejection from this point it
starts the journey towards the bottom,
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if it breaks this level also
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So what do you see over here?
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The market falls more, right?
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Are you seeing this?
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That if we talk about this point,
this is where the market was
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RSI has broken previous high
and previous low over here.
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So, you can understand that we
get this entry also, with price action.
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The line is horizontal
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The market, RSI takes
rejection, and here at
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the bottom also the
horizontal line has broken.
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Can we make it shorter here?
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This is a trading zone for RSI.
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Let's see more examples.
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Let's talk about this one here.
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Here the market, here, as
the market opens, gap down.
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How much does the value of RSI become.
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34, 34 means what, bearish.
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Even the RSI is supporting you here,
that you can make your market shorter.
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Okay guys, is this clear?
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You don't have to buy. We saw right,
that we shouldn't have bought yesterday.
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Right?
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Was RSI 60 plus able to sustain
yesterday even once, just check.
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It tried. But what happened,
it wasn't able to sustain 60 plus.
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Right?
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It got rejection,
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and it wasn't able to
sustain the market also.
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So, do you think it is directly
proportional to the price?
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You must hav read when
young, directly proportional,
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indirectly proportional, opposite, if
this increases, then that also increases.
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If this increases, that comes down,
that is what indirectly proportional means.
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Inversely proportional, sorry.
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You guys must have read that.
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So, this is directly
proportional to the price.
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Rsi which is there, is a momentum indicator
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which tells the strength of the trend.
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If it is 60 plus then the
market becomes bullish,
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if it dips to 40 minus, it becomes bearish.
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One more point.
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If it faces rejection on reaching 60
and it breaks it's previous low
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It's exactly just on top of that, right,
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Okay, it's just exactly
on top of this, have a look.
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Just here, just on top of this.
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This candle which is here,
this is the value of RSI.
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This place where I keep the mouse,
this is the value of RSI
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If I keep the mouse here on 14, on 10
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this is the RSI value of that.
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Look at the right side. Can you see
60 on the right, on right hand side?
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See the right bottom. Can
you see numbers here?
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60, 50, that is how I am comparing.
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What is the value of RSI over here now,
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when the market comes here.
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We are at 60.
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And we got rejection from 60 here.
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So, this market also falls.
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Do you understand now?
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Did everyone else understand
what I just explained now,
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that how am I comparing RSI.
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We have been given numbers
at the right bottom there
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Numbers are given here
on the right hand side.
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And on the top, just on top of that,
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if you will keep the
mouse just on top of that,
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then it will tell you exactly that
at what time do you have to see it.
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Yes, how will you come
to know about rejection.
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Like, look here right,
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What are you able to
understand on looking at this.
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Market is not able to sustain at all.
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Look here, rejection.
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It's not able to sustain.
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It's not able to sustain.
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It's not able to sustain.
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Short, can you buy right now?
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Right now just answer what I will ask you.
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Can we buy in this situation
when it is not able to even sustain?
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No.
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Can you sell?
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No.
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Because look, the first
rule of sell is 40 minus.
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40 minusm but even if it is making low
on 48 again and again and contonuously,
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If 48 breaks, then also I
will make it short, this 48
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If this area comes, then also.
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I will make it short over here,
at this point, after seeing RSI.
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Okay guys. Has everyone
understood the correlation?
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We took out three definitions of RSI.
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60 plus bullish, 40 minus bearish,
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and if it tries to break, could not break,
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and if it's making a
consistent similar kind of area
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then don't wait for 40.
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You don't have to wait thinking that when
it breaks 40, then I will make it short.
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Make it short here,
this is a good position.
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Right? If we make it short here
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then we make it short here also.
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And if we make it short here,
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Okay, that was just one. And it fell
so much that it happened in one go
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But usually, odn't make it short here
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Make it short here only.
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That will be better for you, okay?
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Alright. So, finally you guys saw that
in what way did we use RSI,
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60 plus bullish, 40 minus bearish
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But wait, wait, wait, wait,
you are not going to use it like that.
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We won't use it like that.
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You guys have to use RSI
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in combination with price action.
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What does this mean?
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It's not that if it becomes 60 plus,
you buy it anytime randomly.
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You have to make sure that
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some pattern like that is being made
in price. Like, for example, look here
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Here the price is getting
a resistance continuously
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It cannot break.
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Even RSI has the same condition here.
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But when this resistance of RSI broke
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and it became 60 plus,
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this is the time you are going to buy.
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Same in the reverse case.
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If your RSI is lower
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if it breaks it's lows,
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or let's say it falls below 40,
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and along with that even price breaks some important level,
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then we guys will make it short there only.
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Else we willl not use plain RSI, okay?
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You can never be dependent on single indicator.
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Price action is very important. You
have to watch out price action for this.
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Alright. I hope you must have enjoyed,
and you must have got something to learn.
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You can use this strategy and you
can let me know in the comments
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that how did you find this strategy.
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So, finally I am wrapping up the video.
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Yes. What is that important thing
which I told you that I will tell you?
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That is this, that
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I am coming up with three more important
videos in this video series series for you.
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I will get the first one on RSI diversions.
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There is something in RSI
which is called diversions.
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So RSI diversions,
positive diversions, negative,
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I will get those for you,
you will really enjoy watching them.
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It happens just sometimes,
but it is very profitable.
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The second video which I will get for you,
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this was an indicator which I taight you,
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I will get a proper strategy,
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What is a strategy,
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something in which we use
not one but multiple indicators,
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and we use some different kinds of things.
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So I will give you one very
important solid strategy,
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Definitely it will be intraday which
will help you in booking profits.
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Third one, the third video
which would be there,
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that will be based on
intraday stock selection.
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how should I select my next stock,
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how should I avoid seeing 15-20
stocks and open just 2-3 stocks instead,
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and our work gets done in that much only.
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So, that will be the third
video which I will get.
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So, I will do so much work for you now.
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I am doing that because,
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because I really liked the fact that
you all gave so many liked to my videos
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I just had 400 subscribers before
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but I think they are around 1400,
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like more than double in 48 hours.
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So I like really liked it,
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So guys again you should help me in like
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reaching out to the maximum people,
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please like this video,
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Within two days, on third day
itself I sat to make the video for you.
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because I really liked that
you liked my videos very nicely,
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you shared it so much.
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So please share this video,
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please subscribe if you are new because
such content will keep coming regularly.
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Lastly let me know in the comments
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how do you want improvement in my videos,
or if you need any topics as such, okay?
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Thank you guys,
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see you soon in the next video. Bye, bye!
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