If you're looking to boost your trading game, integrating the RSI (Relative Strength Index) with Bollinger Bands can be a game changer. This indicator combines the strengths of both tools, giving you a clearer picture of market movements.
The setup involves calculating the RSI and applying Bollinger Bands around it. What’s really neat is that it also plots arrows when the RSI moves outside the bands and then re-enters them. This can serve as a great visual cue for potential buy or sell signals.
Check out the indicator layout here!
- RSI: A momentum oscillator that measures the speed and change of price movements.
- Bollinger Bands: A volatility indicator that consists of a middle band (SMA) and two outer bands.
- Signal Arrows: Visual indicators for when the RSI crosses the Bollinger Bands.
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