What is rsi scalping in cryptocurrency trading ? As RSI scalping gains more popularity , it becomes very important to clearly understand the RSI scalping method and the profit potential it offers.
Lets start with explanation of the RSI scalping method in cryptocurrency futures and spot trading.
What is RSI Scalping ?
RSI scalping is a trading strategy that depends on one-minute RSI indicator settings that helps traders detect the best entry points. By adjusting RSI indicator lengths to fit the RSI scalping method, traders can estimate the price direction.
RSI One-Minute Settings for RSI Scalping
RSI 1 Length : 20
RSI 2 length : 100
To identify the best entry points, traders pay attention to RSI lines each attributed different color. If the RSI 1 (set at 20) is above the RSI 2 (set at 100) the price direction is considered to be upward. Based on this logic, traders place open a long position.
Note : These settings are believed to be suitable for high volume coins like Bitcoin and Ethereum. It may not work for low volume coins.