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RSI (Relative Strength Index)

📢 Algorithmic Trading Strategy: #RSI (Relative Strength Index) 💹📉 The #RSI is a momentum oscillator that measures the speed and magnitude of recent price changes — perfect for identifying overbought or oversold conditions. But how can you really unlock its full potential in #algorithmictrading? ✅ What does RSI do? RSI compares average gains and losses over a set period (usually 14 days). 📈 Above 70? The asset may be overbought. 📉 Below 30? It could be oversold. Simple, yet highly effective. ✅ How can it be used? You can build RSI-based strategies in #Python to: 📉 Detect bearish/bullish divergences for early trend shifts 📊 Use RSI crossovers (like crossing below 70) to trigger trades 🔁 Combine with Bollinger Bands, MACD, or volume indicators 🛠️ Adapt parameters for different markets like Forex, crypto, or equities ✅ Why is it important? RSI helps you time entries and exits more accurately in trending or ranging markets. It’s powerful on its own — and even stronger when used with confirmation signals. 🎥 Watch this short video to learn RSI strategy step-by-step! 📘 For 70+ trading strategies and full Python code, check out the book: 👉 https://lnkd.in/eiaK5jc7 💻 Code samples: https://lnkd.in/eSqG4rHv #AlgorithmicTrading #RSI #MomentumIndicators #AlgoTrading #TradingStrategies #Quant #PythonForFinance #TechnicalAnalysis #AmazonBooks

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