A Powerful Method For Capturing Trending Markets Video

Many traders can differentiate between a trending market and ranging market. Watch the video below in which Steve Primo teaches you a powerful technique for capturing trending market using RSI oscillator.

Don’t forget to apply this method in your trading.

Summary: Use 50 SMA for finding the direction of the trade. When price is above 50 SMA only buy and when price is below 50 SMA only sell. Change RSI setting to 5. Wait for the RSI to go above 50 level. Check that the price closed above 50 SMA for the next 5 bars and RSI stayed above 50 level. This is a strong signal for an uptrend on that timeframe. Similarly wait for the RSI to go below 50 level. Check that the price closed below 50 SMA for the next 5 bars and RSI was below 50 level. A signal for a strong downtrend.

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