Fibonacci, fractals, RSI, CCI, Pitchfork Tool, Volume, Gap And Scalping Trading Tips And Tricks
RSI Period Twenty Two
The RSI period twenty-two is my favorite RSI for day trading on the hourly chart. It is tracking the magnitude of recent gains and losses during the last twenty two hours. Note that one is monitoring the bullish and bearish momentum in the last twenty two hours instead of the last twenty four hours. As RSI day trader, one is primarily looking for momentum financial instruments that will rise or decline in one day.
One will look for bearish financial instruments when the RSI 22 is overbought above 70 on the hourly chart. On the other hand, a bullish trading setup is in place when the hourly RSI period 22 is below 30.
Truly, one is using the hourly chart as the setup time frame, but one will combine the hourly chart with both 10M and 3M charts.
Practical RSI 22 Day Trading Steps
1/ Identify RSI 22 day trading setup on the hourly chart. 2/ Check if the setup is reliable by checking at least the daily chart market patterns. 3/ Go to the ten minutes chart and wait for a valid trading signal. 4/ Enter the trade on the three-minute chart.
Remember that anytime, one enters the trade, one must close the trade as soon as the RSI trading signal fails.
Note also that the overbought RSI 22 on the hourly chart does not guarantee that the price will decline. It only indicates that the price is at a resistance level. Indeed, a bullish oversold RSI trading is only the first indication that the financial instrument has a high chance to rise. One should always adopt a multiple-verification approach.
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