Continuing from the previous article, it is the master brother of Zhu Sanqi. He escaped from the 2015 stock market crash and cashed out all Bitcoins at the high level in 2017. He is a legendary figure.

The senior brother shared the secret of trading volume: "As the price rises, the volume increases, and as the price falls, the volume decreases."

Just like yesterday, a reader left a message "What if the exchange washes the volume and the trading volume is fake"?

Zhu Sanqi also asked the same question at that time.

The senior brother shook his white fan and said, "Then use the relative strength (RSI) technical indicator! RSI is an indicator that does not lie!" "Blockchain Tool Treasure Box" is aimed at novice users and lets everyone know what tools are available.

In which scenarios it is used.

There are three common ways to make money in the currency circle: speculating on coins, moving bricks, and mining.

Now it's "Coin Speculation".

Relative Strength Index (RSI), relative strength index.

It is a technical curve produced based on the ratio of the number of rising points and the sum of rising and falling points in a specific period. RSI can reflect the prosperity of the market in a specific period.

RSI was first used in futures trading by Welles Wilder, and was later widely used in short-term investments in the stock market and short-term spread operations.

RSI has proven to be a viable indicator for predicting price movements.

Calculation formula RSI = (average recent increase/(average recent increase + average recent decrease))x100 The calculation steps are as follows: Average recent increase = (2+1+2+4)/6 = 1.5 Average recent decrease =

(1+2)/6 = 0.5 RSI = (1.5/(1.5+0.5))* 100 = 75 RSI analyzes and measures the strength of the buying and selling power of both long and short parties through the rise and fall of the index, thereby inferring the direction of future price changes.

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Commonly used trend analysis is as follows: 1. Judge the market based on the size of the RSI value. According to Wilder, any number over 70 should be considered overbought, and any number below 30 should be considered overbought.

Sell.

An RSI between 30 and 70 is considered neutral, and an RSI of about 50 indicates "no trend" and the market is in a consolidation period with balanced buying and selling power.

But some traders believe that Wilder's overbought/oversold ranges are too wide and choose to change those ranges.

For example, for a market that changes violently, such as the currency market, it can be specified that a value above 80 is overbought, and a value below 20 is oversold**.

That is: When the RSI value is >80, it indicates that the market has become overbought, and the currency price will fall at any time due to the weakening of the buying power. The operation is generally to gradually reduce positions on rallies.

When the RSI value is <20, it indicates that the market has become oversold, the price is not far from the bottom, and the currency price will rise at any time due to the intervention of buying orders.

Of course, this value is completely determined by the trader.

2. Judge the market based on the two RSI curves of short-term (such as 5 days) and long-term (such as 10 days). When the RSI of short-term days is > the RSI of long-term days, it is a bull market; For example: When the short-term RSI stops falling below 20

When it stabilizes and crosses the long-term RSI, it is technically called a "golden cross" and is considered a "buy signal."

When the short-term RSI is above 80 and enters the overbought zone, it shows that the power of the long side is far greater than the power of the short side. Of course, it also shows that the current market is overheated and may be shorted at any time.

When the RSI of short-term days < the RSI of long-term days, it is a short market; for example: if the RSI value is below 50, it is weak, and the general trend is downward.

If the short-term RSI suddenly turns around and falls below the long-term RSI, it is technically called a "death cross" and is considered a "sell signal."

There are also uses such as the difference between price and RSI, trend confirmation, etc., which will not be detailed in this article.

The steps are as follows: First step, select the BTCUSD chart we saved yesterday (click to see how to save and open the chart again at the end of the article). Second step, add indicators. Open the indicator search RSI and click Add. The page will display RSI. Click the x next to RSI

, will remove the RSI.