The game $BTC
S$BNB
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Whether you are aiming to catch an uptrend or ride a downtrend, these practical RSI-based techniques will give you an edge. Let’s break down how to trade long and short positions like a pro:
Long Position: Take Advantage of the Bull Market 🚀
Steps to enter a long position:
📈 RSI Trend Line Breakout: Watch for a breakout from the downtrend line on the RSI.
📊 Oversold Zone: Make sure the RSI is in the oversold zone (<30) before the breakout - this confirms a potential reversal.
🔄 Price breaks above the trend line: Enter the trade when the price breaks the main downtrend line.
Stop loss setting:
Set a stop loss below the last swing low to limit losses.
Adjust based on volatility - tighter for scalping, looser for swing trading.
Pro tip:
Combine this with higher volume to confirm the move. Higher volume = stronger breakout!
Use moving averages (e.g. 20 EMA) for dynamic support after entry.
Short Position: Controlling the Bear Market 📉
Steps to enter into a short selling position:
📉 RSI Trendline Breakout: Look for the RSI trendline breakout in the overbought zone (>70).
🔥 Overbought Zone: An overbought RSI indicates that the uptrend is exhausted.
🔻 Price breaks the trend line: Enter when the price action is confirmed by a break below the uptrend line.
Stop loss setting:
Place a stop loss above the last swing high for protection.
Watch closely for tightening price action in your favor.
Pro tip:
Watch the divergence between the RSI and the price – if the RSI starts to decline while the price rises, this is a strong signal for a reversal.
Add Bollinger Bands to identify price reaching the upper bands in overbought areas.
How to get the most out of both settings 🔍
Volume Confirmation: Increased volume during the breakout confirms the strength of the move.
Risk Management: Stick to a 2% risk per trade – always plan your exit before entering.
Multiple Timeframe Analysis: Confirm signals on a higher timeframe (e.g. 4 hours) for stronger trades.
Patience is winning: act only on proven setups; avoid the fear of missing out.
🔥 Simple strategies like these can transform your trading! Which setup do you prefer - long-term or short-term? Share your thoughts with us below! 💬👇