Gday from Australia.
I’m still in “school” and learning. I have a question is there a lesson about how to add the RSI and other indicators to your charts. May be getting ahead of myself but want to start demo need charts draw first. Using Trading View or should i use any other.
Much Gratitude Trudi 
I have a question about the same topic…
I’m still trying to figure out how to use the stockastic indicator… i learned that when you have anything above 80 than the market is overbought and below 20 it’s oversold, then is a good point to sell or buy, but that’s not actually true, i’m having a lot of trouble doing that and already lost some coins in my account. i started searching for a correct answer found out that i’s a good momentum indicator, but still i don’t know how to use it very well… Can anyone help understand it better?
It indicates overbought/oversold or strong buy/strong sell , , u decide
Keep demo u Will know
thank’s i’ll check it out.
Go to utube and search
- how to add the RSI indicator to your chart using whatever platform you are using
- how to trade using the stochastic
Neither one of these indicators in my opinion used by themselves will help you in your trading; especially when you’re new. They are momentum indicators that measure swings in price. There is a lot more to a trade. When I started a trader told me a trade is made up of 5 parts: Direction, Strength, Cycle, Support & Resistance. The indicators you use should address all 5 and there is no one indicator that does.
My suggestion is try the different ones out, on a demo account. You’ll get a lot of opinions on what ones to use and/or if to use them at all, but that’s what they are opinions. Everything works sometime, nothing works all the time. Something to keep in mind
Hope that Helps
Gp
I use a stripped back chart with no indicators. Just S and R and trend lines.
1 Like
Hi,
Yes you can learn about the RSI indicator here babypips school, in the lesson they explained clearly on how to use it.
You can use indicators as much as you can in a chart, all depend on your capability to read and understand each…
Good luck
Sounds cool still have my l plates on
Hi GP
thanks for tips, yes still in demo learning. Always a student. Will check out utube and see if this is what i’m looking for
haha me too mate me too
This is a common misunderstanding. With momentum indicators ( e.g. stochastics), the levels of 20 and 80 are not signals to take a position against the trend. What they are telling you is that the trend is very strong! And, of course, strong trends tend to carry on…
A trend can continue in the same direction for significant distances while the RSI or Stochastics indicator continue to remain above or around 70/80 in an uptrend or below or around 30/20 in a downtrend. At most, they are only warning that a turn could be close by since markets seldom continue at full steam for a long time.
It is better to wait until the RSI/Stochastics begin to reverse back from these levels before getting interested in a possible reversal. And such a “reversal” in a strong, prolonged trend may only turn out to be a breather until the trend continues…
IMHO a reversal out of these extreme levels can help in identifying a time to take profits or warn of a pending change in direction, but it is better to have some other method to actually specify when to enter a new position. This may be other indicators such as MAs or PA-type levels such as S&R or trendlines or whole numbers. etc, etc
Momentum is a good background feature to keep an eye on but is not so reliable as a sole basis for actual trade decisions.
But that’s just my take on it…
2 Likes
You mean that looking in the long time frames like H1, H4, D1, because in the small ones ex 5M, 1M, it turns much faster… do i get it corretly?
No. I mean that (on any timeframe) just reaching the 80/20 level is NOT a reverse trade signal at all.
All that reaching that level indicates is that the trend is strong. And it can continue in the same direction for some time even after reaching these levels. At best, it is warning you against entering a new position in that same direction because there might be a reversal or correction soon. And the shorter the timeframe the less accurate such levels will become.
Here is a recent example from EURUSD 1H. The RSI reached the 20 level (ringed) and there was a correction thereafter, but the downtrend continued.
So there is a choice, depending on one’s trading style, You could try to trade the correction, maybe hoping it will turn into a full trend reversal, or you can use it as an opportunity to wait and get into the same downtrend at a better level. Or, if you are already in the trend, it may be a useful indication to take some profit off.
But either way, the RSI itself is not a reversal signal, rather it is just measuring the current “temperature” of the move - when it starts to boil then it is usually time to turn down the gas. This happens when the supply of new entrants to the trend slows down and the RSI moves off the extremes - but it does not automatically mean that those already in the trend are exiting - although it might! That is why something else needs to be used to trigger an actual trade entry.
Another similar way of using RSI (which I use as well) is to watch for the cross over the 50 line. In these cases (such as the HLHB method here on BP) other means are used to trigger an entry and a cross over the 50 line is a secondary confirmation of the possible start of a move and helps avoid some fake signals.
3 Likes
Thank’s for the help and for sharing you analysis, yesterday i got some losses on EUR/USD, i got a $10 account and i’m at $7 already 
I saw a shooting star in 1M and placed a 0,01 sell position just after it and panicked when the candle went up, so i thought it would keep going but minutes after it continued to fall…
Stocks had that opening between the two lines, so i thought it would start to fall too, but when the candle went up i thought i was wrong…
Currently i’m using a 1:200 leverage account, since i don’t have much money (start with tthat $10) to go 1:50 (much more safe i think)
The leverage does not affect your exposure risk at all, @Ltorr3s. It only affects how much of your equity your broker initially allocates against your open trade. Your risk is the pip value of your position. If you have a 0.01 position size then your profit or loss will be the same regardless of the leverage you use.
Personally, I do not think candlesticks or stochastics are very suitable or reliable for trading on a 1 min chart. But I cannot suggest what would suit because I do not believe anyone can produce consistent profits on such a small time frame unless they are very talented and experienced.
I think the key word in your post was:
That is what will lose you money as well as having to have (too) close stops because of your very limited funds. Personally, I would suggest you trade on a demo account so that you can freely and safely try different approaches and various risk control parameters.
That way you can learn a lot and eventually gain the necessary confidence that will help you avoid “panicking”! 
Losses in trading are not a problem. They are the equivalent of the overheads that any business incurs in order to make a profit. The focus should not be on each individual trade, rather it should be on the overall results over a period of time - and that you can only really gain at this stage in your trading career by trading on a demo account until you are confident in your method, strategies, risk control, money management and overall consistency in producing a net profit.
But thats just my personal view!
4 Likes
No problem, you’re being very helpfull, i’ll stick to the demo account a little more and try to identify the things you wrote me.
Thanks for eveything !!
I hope it helps!
Be careful at the moment, there is a lot of uncertainty around right now which is creating turbulence and volatility in stock markets, oil prices, commodities and forex markets!
Take care, learn safe!
haha me too mate me too; And so is anybody who’s making money. Always be learning. This is no different than anything else in life. No short cuts, no secrets or freebys, but you can always learn.
1 Like
Im personally doesn’t recommend candlestick pattern below H4 timeframe
If you are interested in removing the clutter from the charts aka excessive indicators. I highly recommend starting learning the basics of market structure. There are many ways one can interpret such information. I’ve put together my own approach, which you can visit via our blog.