In this video, we have with us Mr. Vivek Bajaj, co-founder, StockEdge, Elearnmarkets, who will be holding an informational discussion with Mr. Vishal Malkan, an expert trader and trainer, who will be talking about the use of the RSI indicator to make profitable trades in the stock market.
Technical analysis is a vast subject, but by focusing on one such indicator which we are most comfortable with, we can become successful in the market on our own pace. One such indicator is the Relative Strength Index or RSI, which Mr. Vishal Malkan will be focusing on in this video.
Mr. Malkan first talks about his family and the events of his life which have led to him becoming a full-time trader. He will then start his technical discussion on his RSI strategy – the 5-star RSI strategy.
Mr. Malkan will first talk about the events that led to the creation of this strategy. After that, Mr. Malkan will start with the basics of the RSI index and the basics of range shift. We will talk about an unconventional way of looking at the RSI index on a chart, and its benefits for traders.
Next, Mr. Malkan will discuss the theory behind the definition of the ranges in the RSI index, and the relevance of this theory to traders, and we will discuss the unconventional RSI approach with some basic examples.
After defining some ranges for the indicator, we will discuss how this approach can be used for various time-frames, and for different products of the stock market as well. Mr. Malkan will then aim to simplify the usage of his strategy, by breaking it down into different approaches for multiple time frames.
He will show how to identify the inflexion points on the charts with the ranges he had previously defined, to make the concept of breakout trading easier. He will also show us how we can use the concerned RSI for swing trading strategy purposes as well. We will see the relevance of this with some practical examples on charts.
After showing the weekly and monthly time frame application, we will discuss the implications of this strategy in the daily time frame as well, and how we can shift our time frame and still make the strategy operate accurately over various time frames.
We will also discuss the importance of doing manual back-testing on our strategies in the market to identify our drawbacks and fix them.