RSI indicator trading strategy, Part 1

RSI indicator trading strategy, Part 1

RSI indicator trading strategy for Forex, stocks and E-minis.

The RSI indicator and other “bounded indicators” are often mistakenly traded as buy signals when they’re oversold and as sell signals when they’re overbought. This is exactly the opposite of what works!

Enjoy the video! Leave your questions and comments below!

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Barry Burns
Top Dog Trading

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Watch the related video: “Forex Trading Strategies: Enter When Time and Price Come Together:”


  1. thankyou for your video ive paid out a lot of money over two years but still not profitable , i have the elliott wave book but cant seem to get the waves right most of the time , how can i get the wave count on my chart like you have on your chart please,
    Regards John Underhill

  2. Awesome video!

  3. The only reason of writing this comment is to help you people out because I have been in that place and I would have given anything to read a comment like this that could have gotten me out of my problems. The solution to all your problems is in this great app named ( that’ll be good enough for all your trading needs.

  4. Marjorie Morgan

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  5. Wow. lightbulb moment. RSI made a lot more sense now, Barry. We've been looking at it completely the opposite. Haha!

  6. RSI is all about momentum of equilibrium. Seller and buyer dealing the price.

  7. You can't trade indicadors rsi works when you combine it properly , oversold by my experience is under 20 you don't make trades by indicators , it's just a sign to be alert , can't trade against the trend but chances are their could be a change of trend , market starts loosing strength gos sideways , wait for a strong sing of. Hangevof trend look for a new highs new lows

  8. Tanya van Huyssteen

    Hi where can i download the RSI indicator software?

  9. never thinked that way one word just awesome….

  10. Anyway to use another period of the charts. The reason for that fall was due to the Brexit vote! It would be helpful to see where the RSI showed the strength of price actions when it was not skewed by extreme fundamental news. Anyone with any sense should have logged themselves in a sell when the Brexit vote came in.

  11. Good man

  12. Thanks for the simple good advice

  13. when price is below 50ema in daily chart, oversold just means a short retrace.. not bull trend. and in above 50ema.. vice versa

  14. You gotta be impressed Barry. the only complaint seems to be that we can't see enough of you with the advertisements in our way.

  15. MikeTheRomanSoldier

    I have 2 questions

    What indicators can you add along with the RSI to get a better signal?

    Also is the RSI good to use for intraday trading?

  16. Barry, Really enjoy your videos, my question is I normally trade 5 min binary options and what you recommend for a time frame to use on the moving average? 50 be to high or would a 20 be much better? Thanks a bunch and looking forward to the upcoming webinar.

  17. its a 50:50 thats why you will never win..! But if you use 30 sec you will win i made 14K in 1 week..

  18. "The trend is your friend till the end"

  19. thank you, that was amazing

  20. Thanks for the video. I've almost always find my self entering a short or long position based on RSI overbought or oversold indicator and the stock goes in reverse direction.

  21. Totally against what I have been thought before but makes absolute sense. I am going back and study some charts and put it to the test.

  22. Love the video, thank you. I have been using RSI on my binary trading rather than just standard forex. Thank you for sharing your knowledge. Hopefully we can all make some money if we all share our ideas. Thanks again :)

  23. great lesson, i always did the opposite

  24. please hide your Advertisement on the bottom left, we can't see something at 5:46

  25. Edward Mokhethi


  26. Sounds great but I don't know where you're going to find an RSI "oversold" in a rising market unless it's already in an upward sloping channel.

  27. Joyce Ntombi Skubi Mcha

    ..and easy to understand

  28. Joyce Ntombi Skubi Mcha

    im new in this trading thing. I love your strategies…very informative

  29. Good video. Most traders think slapping few indicators with popular setting will bring them 100% winners. Mostly two types of indicators, give either early smoke or late signal. Both are bad. To confirm, you got to learn, price action trading, which will build your foundation solid and you make killer and precise entries. There is no shortcut. Learn and make money.

  30. Thanks Barry,
    Awesome info, Many Thanks my friend!!!

  31. Pro traders know that the RSI is not a stand alone indicator! Price action is king!!??

  32. Hey Barry, more great tips. I've watched tons of rsi videos and not one has said it's a bounded indicator, probably the first thing you should know….
    Thanks, Mike

  33. very good video thank you very much

  34. The trouble with the rubber band strategy is that it is an intra day trade and I can't do this while I'm not available to sit in front of the computer which is lots of the time. Am I missing something?

  35. Very honest videos. I've watched a LOT of videos about trading and yours seem to be free of the garbage offered by others. Very interesting and reassuring to see. Thank you.

  36. Barry has pointed it right. RSI is relative strength indicator which shows strength towards bearish and bullish market. People often misunderstand it with oversold and overbought.
    The idea is to follow the trend and when its downward trend below EMA prefer not to enter in oversold area.
    Divergence is covered in a nice way.
    keep posting Barry.. good job :)

  37. Wish I had this a year ago. I have been using the 'oversold' signal with disastrous results.

  38. Arturo Hernandez

    funny i just got rid of my rsi indicator window on my charts this morning lol thanks to your videos(looping ?) i use Fibonacci and fibo extension

  39. More great trading ideas. Thanks. Bob

  40. Great video

  41. F3 is a reversal against the dominant up trend. Trading against the trend is just an attempt to catch the market turn which is often wrong but eventually it will turn as it did at F3 and then a multi month down move. I agree RSI is a distraction.

  42. I always enjoy your education Dr B.

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