Nikita Poojary
@niki_poojary
24 Tweets • 2023-03-07 • See on Twitter
rattibha.com
Subasish Pani revealed the most simple yet effective
strategy: The RSI set -up.
This set up can be used for intraday, swing trading,
positional trading as well as investing.
RSI set-up
Collaborated with @AdityaTodmal
1/ Key highlights:
With this setup you can capture big targets.
This indicator helps you to understand where the trend
changes.
These are the two key highlights of this Indicator.
2/ Timeframe:
• Intraday: 5 mins and maximum 15 minutes
• Swing Traders: 15 mins, Hourly & Daily TF
• Investing: Weekly or Monthly TF
3/ RSI setting:
RSI setting for Indices:
Upper range: 70
Lower Range: 40
RSI setting for Stocks:
Upper range: 70
Lower Range: 30
4/ Indicator Setting:
Click on Indicator and type RSI and then do the
following changes in the RSI setting.
5/ Logic behind the W pattern:
6/ If you have understoood the logic for the W pattern,
then inverse of the same is M pattern.
7/ Intraday set-up to go long:
1. RSI < 40
2. Spot where RSI is making a swing high post RSI <
40
3. Mark the high of this alert candle where RSI made a
swing high
4. Indicators follow prices, so only after one or two
candle post the alert candle we can see RSI swing
high
8/ Intraday set-up to go long: contd.
5. SL: Low of the Alert candle or 50 points whichever
is LOWER, but always ensure it will be above 20-
25points.
6. Target: Since we spotted this when RSI was near
40, hence atleast hold it till RSI reaches 70.
9/ Intraday set-up to go short:
1. RSI > 70
2. Spot where RSI is making a swing low post RSI >70
3. Mark the low of this alert candle in which RSI made
a swing low
4. Indicators follow prices, so only after one or two
candle post the alert candle we can see RSI swing low
10/ Intraday set-up: When to take short position?
contd.
SL: High of the Alert candle or 50 points whichever is
LOWER, but always ensure it will be above 20-
25points.
Target: Since we spotted this when RSI was near 70,
hence atleast hold it till RSI reaches 40.
11/ Basic Idea:
Spot M near RSI>70.
If it breaks at 70, we can estimate that it will move
swiftly towards 40 RSI, which will be our target.
12/ How to control risk:
Plan on making no more than three trades per day.
Your one-day stop loss will be too high if you place
more than three trades.
We won't expose ourselves to that kind of risk for just
one day.
13/ Which days to trade:
If you've limited capital, then only trade only on
Wednesday and Thursday.
These days, premiums are lower, which is benefical
for buying options.
However, if you work as a full-time trader & are
consistently profitable, you can use this everyday.
14/ Swing trading set up Daily TF:
Entire theory for going long and short remaisn the
same, except that the TF will be changes.
In case of swing trading, lets says you are tracking
daily TF, then 200-300points should be the maximum
SL.
15/ Investing set up Weekly TF:
Entire theory for going long and short remaisn the
same, except that the TF will be changes.
In case of swing trading, lets says you are tracking
daily TF, then 200-300points should be the maximum
SL.
16/ Magic of setup:
You can buy near to the bottom or sell near to the top.
You'll experience frequent SLs, however it will still be
worthwhile because whenever you lose, you'll lose
30–50 points, and whenever you win, you'll make
150–300 points.
Hence the R:R is suitable.
17/ After continuous profits:
Reduce the quantities on this setup as the market is
going to change after a series of wins.
The market will soon change from trending to range
bound and vice versa.
The environment is not the same always.
18/ Pro-tip:
He likes to spot RSI divergence within 3-10 candles,
as the sentiments doesnt change much in those
shorter tie instead of checking in different years.
He likes to check it in a lower TF i.e. 15min, 1hour or
maximum daily TF.
Link to this video of RSI set up:
https://www.youtube.com/watch?v=EHHj-KKT
lME&lc=Ugwyw-4Zi2YnOg-msex4AaABAg
If you enjoyed this thread here's another one:
We are on Youtube as well now!!
We have a FREE Youtube Channel where we cover
our analysis of the markets.
If interested feel free to join using this link:
https://www.youtube.com/@MarketPulsewith
AdityaandNikita
We also have a FREE Telegram channel as well.
Link to join:
https://t.me/marketpulsewithadityaandnik
ita
That's a wrap!
If you enjoyed this thread:
1. Follow us
@Adityatodmal
&
@niki_poojary
for more threads on Price action, Option Selling &
Trading growth.
We've got you covered.
2. RT the first Tweet to share it with your audience.
I appreciate it!
These pages were created and arranged by Rattibha
services (https://www.rattibha.com)
The contents of these pages, including all images,
videos, attachments and external links published
(collectively referred to as "this publication"),
were created at the request of a user (s) from
Twitter. Rattibha provides an automated service,
without human intervention, to copy the contents of
tweets from Twitter and publish them in an article
style, and create PDF pages that can be printed and
shared, at the request of Twitter user (s). Please
note that the views and all contents in this
publication are those of the author and do not
necessarily represent the views of Rattibha. Rattibha
assumes no responsibility for any damage or breaches
of any law resulting from the contents of this
publication.
