she is absolutely slaying it on a daily
basis making
10 to 20 000 a day trading us 30.
so the stochastic rsi a lot of you guys
want to learn about it i get it in my
discord chat
all the time in this video i'm going to
show you how to use the stochastic rsi
which settings you should be using and
on which
time frame so that you can have a clear
understanding of a better entry
and when the price is actually going to
reverse
or continue
[Music]
welcome back to the channel everybody my
name is artie and this is the moving
average a show where we discuss
everything day trading to keep you
profitable on a consistent basis
so there is a relative strength index
the standard
rsi then there is the stochastic
rsi and it basically is this formula
which i'm going to show you in the video
but let me explain it this way when the
standard rsi
is doing its flow it's only got peaks
you don't know when that price is
actually going to start coming down
whereas with the stochastic rsi it is
two
overlying percentage averages and so
when those lines
cross a lot of people use that as their
indication to get in
on their position so let's jump into the
charts i'm going to show you how to set
it up and i'm going to talk about the
basics of the stochastic rsi formula so
investopedia is one of the greatest
websites if you want to learn about an
indicator or how it works or how to
adjust the settings to get the best
results but essentially for the
stochastic
rsi it's taking the rsi minus the
minimum
rsi that it was in that time frame
divided by the maximum rsi
minus the minimum rsi so you can see how
it's taking multiple
averages working it in to make one
specific indicator there is
also another part of the stochastic rsi
which you'll see when we go into the
settings
but there's a k period percentage and a
d period percentage
the k period is the number of periods
used in the stochastic calculation
whereas the d
percentage is the number of periods used
when calculating the moving average
just so that you have a basic
understanding that this takes into
account a lot of averages
and percentages okay so now we are
looking at euro usd the most
commonly traded forex currency pair on
earth
i want you to pull up two things on your
chart two things alone
both free indicators that you can use in
confluence with each other to find a
great entry on a trade the first thing
you're going to have
is a 200 moving average you can use
smooth
you can use exponential it depends on
which currency pair i prefer smoothed
the next
indicator that you're gonna pull up is
the stochastic
rsi it is a built-in indicator put a
star next to it keep it on your
favorites list
now once you add that you're going to
get this big purple line with these
two overlapping red and blue lines
now i want to discuss these settings
really quickly and i want to tell you
how you can adjust them depending on
which time frame you are trading so
clicking on the settings you can see the
k percentage is three
d percentage is three rsi length is 14
which is the standard number for the
traditional relative strength index
and the stochastic length is 14. these
settings
are completely fine if you are trading
15
minutes and above so the 15 the 30 the
one hour the four hour or the daily
if however you are trading below the 15
minute time frame
you want to change the stochastic length
to
eight as you can see it made it a lot
more noisy but that's because we're
still on the 15 minute chart if we take
it down to the five minute
it smooths it out just a little bit but
for the purposes of this video we are
going to keep
the default settings and keep you
trading on a higher time frame which
means less false signals
keeping you more consistent so this is
not my strategy
if you are part of our discord group
you've seen in the testimonials
there's this chick christie she is
absolutely slaying it on a daily basis
making 10
to 20 000 a day trading us 30.
go look at the testimonial section in
the discord group but essentially people
were asking her about the stochastic rsi
settings i promised to make a video on
it that's why i'm discussing this with
you guys
basically what we're doing here is we're
looking for
continuations of a downtrend or an
uptrend
depending on if it's above or below
the 200 moving average so essentially
we're looking at places
like this finding resistance on that 200
continuing down
finding resistance on the 200 again and
continuing down but we're using the
stochastic
rsi to find our entry points all right
zooming this in a little bit closer you
can see that we're getting
a lot of resistance off that 200 and it
starts coming down so
people would see this normally and start
getting in
right about here just simply looking at
the price action
but if you had the stochastic rsi up you
would actually
see a crossover in the rsi so making a
vertical line right here
let's zoom it in and look at what the
price action is doing
versus what the stochastic rsi is doing
you can see we had this last ditch
effort momentum swing
up and then a completely flat top
starting the continuation down
this in itself is a very weak signal
it's not even an engulfing candle
but if we look at the stochastic rsi we
see
that at this point we had a stochastic
crossover
we wait to make sure that that's a solid
signal
this right here is three candles in to
the downside of the move
so you can clearly see that this price
is in the overbought territory of the
stochastic rsi
with the potential to continue to the
downside and that's exactly what you
got going on here and with the
stochastic rsi
maintaining this oversold market for
quite some time
this is just a heavy momentum grab you
could have gotten out on this first
stochastic cross
but i mean theoretically you could have
just maintained a trailing stop loss on
this
and gotten a nice decent move out of it
again using the stochastic rsi
alone would be very very difficult in my
opinion you need to overlay this with
multiple indicators
now again i told you that this is not my
strategy but one of the supplemental
tools that this person uses to get
better entries
is actually an indicator called the lmi
it is a paid indicator
and just like the stochastic cross
you're looking for a cross right here on
the lmi
i'm not going to go into this lmi
indicator on this video
but essentially they all work in
confluence with each other
if you want to learn more about this
head on over to our discord group
there's links to videos that christy
made that are phenomenal
and literally she slays the markets on a
daily basis so if you want to learn her
strategy
top to bottom front to back get in the
discord group
and follow the links in there i just
wanted to make a quick rundown video so
that you guys had some clarification
because there was a lot of questions
in the testimonial section about this
strategy if you guys are still watching
this video that means that you like the
video so if you wouldn't mind
hit the big thumbs up button down there
below my face and if this 15 minute or
higher time frame is way too high for
you and you want to scalp on the one
minute chart
check out this one minute scalping video
that i made that is just
absolutely legit and if you guys got
some value out of this video and you
like the way that i teach consider
subscribing to the channel by clicking
this button
right here thanks so much for watching
and we will see you in the next video
speak english dude