Rising RSI Exhaustion (What you Should Do)

Rising RSI Exhaustion (What you Should Do)

Rising RSI Exhaustion (What you Should Do) 300 169 Minimalist Trading – Best Trading Indicators for TradingView

A rising RSI Exhaustion is a very good predictor of an imminent price uptrend.

That’s not all.

In fact, you can combine a rising RSI Exhaustion with further analysis to identify the best Trading opportunities.

We did exactly this in the live trade on TradingView that we discuss below.

First, what is the RSI Exhaustion?

The RSI Exhaustion is an essential replacement of the regular RSI indicator because it is able to identify and highlight Hidden Exhaustion levels.

In today’s live trade, we have a rising RSI Exhaustion. So what should we do when the RSI Exhaustion moves higher?

It’s simple!

We just look for confirmation in the other Trading Indicators for a buy setup.

If they all confirm the Trading opportunity, it’s very likely that it will be a Highly Profitable Trade.

Trade setup – 28 Oct 2019

What you should do when the RSI Exhaustion moves higher Setup 1

Today we have a high probability trading setup on AUDJPY, in fact:

    1. We have a higher bottom (displayed by the Bottoms Tops Signal) because the price is moving up
    2. The RSI Exhaustion moves higher (it is supporting the price up movement)
    3. The RSI Exhaustion is bearish exhausted (the price doesn’t have too much room to move lower)

Moreover, these three conditions happen just above a major support indicated by the Levels and Zones and so the price should find a significant upward pressure at the current level.

Trade update – 28 Oct 2019

What you should do when the RSI Exhaustion moves higher Setup 2

The price is moving fast to the upside and towards our target.

Trade update – 29 Oct 2019

What you should do when the RSI Exhaustion moves higher Setup 3

The trade got a bit compromised by the fact that a minor sell setup emerged while the price kept moving higher.

It should not create any major problem.

However, to avoid any risk, we moved the stop-loss to breakeven so that, in the worst-case scenario, if the price comes back down, we’ll get out of this trade without losing any money.

Actually, we’ll make a small profit!

Trade closed – 29 Oct 2019

What you should do when the RSI Exhaustion moves higher Setup 4

The price just reached the target so we closed the trade with another win.

In the end, the price hit our target without any major concern and the final return was a 3.2x profit that got added to our trading account.

The rising RSI Exhaustion played a significant role in identifying this Trading opportunity.

Then, the additional Trading Indicators for TradingView confirmed that we could take it.

If you’re wondering How many Trading Indicators you should have on your Chart, the answer is simple.

When you use a limited number of quality Trading Indicators, you are well set for long-term profitability.

Is the RSI indicator one of the indicators that you use? Or maybe you use alternative Trading Indicators.

Feel free to share your usual Trading Indicators and your opinion on the RSI Exhaustion by leaving a comment on the YouTube video above.