The Relative Strength Index or RSI is an indicator many traders use as a part of a bigger trading strategy. It is especially useful in determining whether the trend in an instrument or currency pair is at its extremes – either oversold or overbought.
Basically, a currency pair is said to be oversold when its RSI hits 30 or below, meaning sellers are quickly dissipating and a bullish price reversal is abound. Inversely, a currency pair is said to be overbought when its RSI hits 70 or above, meaning buyers are diminishing and a bearish price reversal is just around the corner.
The RSI indicator coupled with other technical indicators and sound fundamental analysis allows you to spot the end of long running trends and catch the new ones that’s about to unfold while you roll away with profit. Sure, RSI alone will not guarantee a particular change in price action however it is most certainly a viable starting point for finding your next profitable trade. It would thus be helpful if you can somehow monitor at least the RSI value of multiple currency pairs at once to scout for that profitable trade.
Trading Indicator Lab’s Multi RSI Indicator allows you to efficiently monitor the value of the RSI of twenty-eight different currency pairs at once which would have only been possible by running several charts with RSI attached to each of them. Using the Multi RSI indicator, you can use just a single chart to see the movement of RSI across many currency pairs in real-time at any given timeframe.
The Multi RSI Indicator prepares a two-column list showing the twenty-eight currency pairs derived from the eight major currencies in the Forex market. At one glance, you can tell which currency pair is at the verge or is already overbought or oversold. Using it is very easy. In our next post, we will show you how to read the Multi RSI indicator and use the information to give you a piercing edge in entering trades in currency market.
You can find out more on how to use the Multi RSI indicator here.
Happy trading! 🙂