RSI profit taking in an overall Bull trend market
This is for my own understanding and not financial advice. blah blah blah.
This is a basic idea that will be obvious to most. While looking at shorter time period can give you some understanding of whether the market will change in trend direction it is much more risky to trade on.
On this weekly chart it shows that the overall trend over 2017 was extremely bullish and in this market if you were to only trade by Buying and selling of BTC with Fiat and not leveraged long and short positions(which you could have done also). You could have profited by trading the RSI.
On the weekly chart in a bullish trend the RSI stayed mostly above 50 and peaked at around 80.
So this would mean that if you were to buy when the RSI was close to 50 and then sell when the RSI was above 80 you could potentially increase your holding position over time and profit take as well.
This is a basic idea that will be obvious to most. While looking at shorter time period can give you some understanding of whether the market will change in trend direction it is much more risky to trade on.
On this weekly chart it shows that the overall trend over 2017 was extremely bullish and in this market if you were to only trade by Buying and selling of BTC with Fiat and not leveraged long and short positions(which you could have done also). You could have profited by trading the RSI.
On the weekly chart in a bullish trend the RSI stayed mostly above 50 and peaked at around 80.
So this would mean that if you were to buy when the RSI was close to 50 and then sell when the RSI was above 80 you could potentially increase your holding position over time and profit take as well.
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