Theory of Using RSI with Moving Averages – By Mr.Naga Prasad.
• This theory works on all time frames – from intraday to Swing to Positional & Long Term.
• Applies to All Trading Instruments – Currency/Stocks/FnO/commodities Etc.
• Time Frame can be 3Min-5Min-30Min-1Day or 1Week or Higher to see bigger trends.
• For This to work, need to use RSI and Couple of Moving Averages along with VWAP.
• Refer below Steps for understanding.
STEP 1 – Configure RSI & 3 different Moving Averages as per Below Photos
Step – 2 Follow Below Notes to Trade
• After Set up as shown in photos above – on Chart add VWAP and 21 Moving Average as default.
• One all is set Chart should look like below.
• Whenever RSI and Along with MA(3,RSI09 ) Line break above 50RSI Levels this point is our entry for Buy.
• Whenever RSI and MA(3,RSI09) breakdown from above the 50 RSI Levels that is entry for Short Sell.
• Note that White Line in in RSI Panel is 21Moving Average in conjunction with RSI09.
• Red Line in RSI Panel shows 50 Moving Average in Conjunction with RSI09.
• If along with RSI and MA(3,RSI09) these two Moving Average also break RSI50 Levels then script becomes
super bullish & Vice Versa. RED Line in Chart is 21MA and Yellow Line is VWAP.
• On either Side 21/50MA will work as support or resistance. e.g if RSI-09 and MA(3,09) is coming from above
the 21/50MA then both 21/50MA can work as support and swing up the stock. Vice Versa if RSI09 and
MA(3,09) is coming from bottom towards 21/50MA then both 21/50MA can become resistance and stock
might go down. Refer Chart below.
• Use “Intraday & Swing Stocks” & “Self RSI Scanner/AB” Chartink Scanner to find stocks bullish for day in
morning at trading start and take entry as mentioned above. This works on Index As well.
• Whenever RSI09 and MA(3,RSI09) break RSI50 levels and take support on 21/50MA and then if RSI50 breaks
50 Levels on upside again expect a huge spike basis time frame. Refer chart above.
• 85-90 RSI is overbought & 25-20 RSI is Oversold RSI Levels.
• Exit or profit booking can be done when RSI09 & MA(3,RSI09) Break from above the MA21/50 lines Or Exit in
profit can be done when Price goes below VWAP and 21SMA.
Entry and Supper Bullish Indication
Short Selling Entry with Super Bearish Indication
RSI09 TAKING SUPPOER ON MA21/50
Scanners –
https://chartink.com/screener/copy-copy-intraday-or-swing-by-np-39
https://chartink.com/screener/copy-self-rsi-setup-scanner-ab-80
https://chartink.com/screener/copy-intraday-short-by-np-83
