I Tested RSI Indicator Trading Strategy For 100 Times with $1000 | The Results Surprised ME

I Tested RSI Indicator Trading Strategy For 100 Times with $1000 | The Results Surprised ME In our last video where we tested the MACD indicator, one of our subscribers asked us to make a video about the relative strength index (RSI), in this video we will be testing this popular indicator for one hundred times. Again thank you Nessahra for your request. And as we always say, feel free to suggest any strategy that you want us to test and evaluate in the comment section. The relative strength index (RSI) is a momentum indicator used in technical analysis that measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset. The RSI is displayed as an oscillator (a line graph that moves between two extremes) and can have a reading from 0 to 100. The indicator was originally developed by J. Welles Wilder Jr. and introduced in his seminal 1978 book, "New Concepts in Technical Trading Systems." The formal interpretation of the RSI indicator suggests that values of seventy or above indicate an overbought or overvalued condition and may be pre-sign of a trend reversal or corrective pullback in price. On the other hand An RSI reading of thirty or below indicates an oversold or undervalued condition. We will choose to test the strategy on one hour time frame. it is important to realize that the longer the time frame, the more reliable the signals being given. As you drill down in time frames, the charts become more polluted with false moves and noise. Ideally, traders should use a longer time frame to define the primary trend of whatever they are trading. The RSI indicator strategy we will test today is simple, we will go long as soon as the RSI indicator gives us a reading below 30, and we will go short once the indicator reaches a value above 70. Choosing the right time frame is essential when you are back testing a strategy, many strategies work perfectly on certain time frames but fail completely on others. RSI Indicator strategy works best on high time frame, starting from 30 minutes and above. If you try the strategy on smaller time frames, you might encounter many false entry signals. Contact us: ⭐📩Submit Your Trading Strategy for Testing: https://bit.ly/3h5hZlK