[Trading strategy with RSI and ICHIMOKU]- Steemit Crypto Academy- Homework post for Professor @abdu.navi03 by [@shylock2002]

In the crypto market traders usually make utilize indicators to make their analyses. But not anytime this indicator favors them at times it gives false signals. As we all are aware that it is always recommended that traders must join two or more indicators for their chart analysis to get an accurate outcome, But we must take note that no indicator is fully reliable sometimes it give false signals. But in this task, I would like to focus more on the RSI and the ICHIMOKU indicators. I will be giving a brief on each of these indicators in my next writing.

RELATIVE STRENGTH INDEX: Is what we have shortened to RSI, Is also an indicator that a lot of traders use in examining their monetary cryptocurrency market, This indicator was created by a man called J. Welles Wilder. The RSI is also used in displaying all the bears and bulls on the market. With the bears and bulls, it helps traders to know if the sellers or buyers are managing the market at the moment. Or it can be used in observing overbought and oversold circumstances in the market. I will be showing a chart below of the RSI.

ICHIMOKU CLOUD: This Is also another type of indicator that traders use in their chart analysis. So with indicator, it differs from the RSI such that with the ICHIMOKU it is mainly utilized by traders in observing the support, Resistance, Momentum, and also direction of trendlines that is very useful to traders on the market. This indicator was successfully created by a man called Goichi Hosoda. I will be showing some charts below of the ICHIMOKU.

Here before traders can be able to make the best trading analysis for themselves they can take the advantage to join both the RSI and the ICHIMOKU for a successful chart examining. We all can testify with me that with the ICHIMOKU it always happens to be giving an overdue signal to traders on market. So traders can take the chance to add the RSI to the ICHIMOKU to help the market to be giving out a quick signal to traders, The ICHIMOKU together with the RSI traders can make a quick entry position, Also ICHIMOKU together with the RSI helps traders on market to be seeing all the negative signal on the market, It is always recommended to be utilizing additional indicators to help traders to observe an accurate negative signals to prevent traders from entering into a trade to prevent loss. This should tell us that ICHIMOKU together with the RSI is assisting traders in the market.

For this task I will be explaining all defect whenever we try to use the RSI and the ICHIMOKI in my next writing. Should traders must a note of it anytime they use this type of indicators individually.

So in the cryptocurrency world, it is also made clear to all traders that no indicator can give an accurate result only, It sometimes gives negative signals, So it is always recommended that they join two or more indicators to help them get a good chart analysis, In my next writing I will be giving out some defects anytime traders try to use the RSI individually on their chart analysis.

• Anytime traders try to use only the RSI on their chart, At times it brings out negative signals to traders, This may lead the trader to make a bad trade entry and can lose profit or assets.

• Anytime traders try to use only the RSI on their chart, It makes it difficult for traders to be observing the actual volume penetrating the market.

• Anytime traders try to use only the RSI on their chart, It makes it difficult for traders to be observing an understanding trendline on high period on the chart.

• Anytime traders try to use only the RSI on their chart, It makes it difficult for traders to utilize their RSI indicator anytime the trendline on the market is extremely powerful.

So in the cryptocurrency world, it is also made clear to all traders that no indicator can give an accurate result only, It sometimes gives negative signals, So it is always recommended that they join two or more indicators to help them get a good chart analysis, In my next writing I will be giving out some defects anytime traders try to use the ICHIMOKU individually on their chart analysis.

• Anytime traders try to use only the ICHIMOKU on their chart, It makes it difficult for traders to be following all the brokers and buyers on the market.

• Anytime traders try to use only the ICHIMOKU on their chart, It makes it difficult for traders to be observing an early signal on the chart, Due to this it always affects trader to be making an overdue trades.

• Here each time we have the value of the cryptocurrency asset up the Ichimoku, This tells us the cryptocurrency asset is known to be in an uptrend movement, And whenever we have the value of the cryptocurrency asset down the Ichimoku, This tells us the cryptocurrency asset is known to be in a downward trend movement.

• Whenever the RSI is up 80 level, This tells us the asset is an overbought level and the overbought region also means it is in an uptrend. Here we get to know that anytime the trendline happens to be extremely powerful on the chart market, Our cryptocurrency asset will still be in its overbought level or uptrend and vice versa.

• Using only the RSI it is extremely difficult for traders on the market to be observing a good trendline on market, That is why it is always recommended to join the Ichimoku cloud. So whenever the Ichimoku cloud is been utilized it always helps trades to be observing a good trendline on the chart market.

• Here anytime the price of the Ichimoku cloud happens to stick up the Ichimoku cloud this should tell us the market signal is in an uptrend direction. So before traders will be able to observe the actual volume of the market, They should check the quantity of the cloud, That is the bigger the volume of the sellers the week the trend, and the bigger the volume of the buyers the more powerful the trendline on the chart.

So here the Moving average together with this strategy is going to be a good chart examining for easy observing of fake Signal through the Ichimoku cloud. Whenever we talk about the moving average it also is called a trend-based indicator which is very useful on chart analysis, That is it can be used to observe reversal trendline direction or trendline direction on the chart market. So anytime a trader decides to put the length of the MA it usually depends on the type of trading method they want to enter. For this task, I will be utilizing or putting my MA length at 85. I will be showing screenshots below to get more understanding.

Here when you take a look my the chart I provided below, I applied the RSI, Ichimoku cloud and also a moving average which was set at a length of 85 and also was set at color black. So it was seen that the move the price of the cryptocurrency asset move down both the ichimoku cloud and the moving average was in an downward trend direction.

The support and resistance are very useful for traders in their chart examination. The RSI strategy together with the ICHIMOKU strategy can be easily used to observe our support level and the resistance level. Ichimoku cloud is mainly for spotting a resistance level and a support level anytime there is a market trend. Whiles RSI is mainly for spotting a resistance level and support level anytime there is a market sideways so traders must be careful when spotting the resistance and support level.

Herewith our trading strategy the traders on the market can check if their trendline happens to be a weak trendline or a strong trendline from their chart is very quick to check. So here traders should take their time to check the interval of all the prices of the cryptocurrency asset through the Ichimoku cloud. Traders should take note that anytime the interval in price is close, We will have our trendline as a weak trendline and vice versa.

As I just in my previous writing, Whenever there is a market trend, With the help of the Ichimoku cloud they can quickly observe the resistance level and the support level on the chart. Here a support level is always noticed in the chart whenever the Ichimoku cloud happens to be in the color green on the chart, Whiles the resistance level is always noticed in the chart whenever the Ichimoku cloud happens to be in the color green.

As I just in my previous writing, Whenever there is a market sideways, With the help of the Ichimoku cloud they can quickly observe the resistance level and the support level on the chart, In the market sideways the Ichimoku cloud doesn’t always give accurate outcome when compared to the using of Ichimoku cloud on the market trend for spotting the resistance and support level. With the market sideways whenever the oversold region is acquired through the indicator called RSI we always assume that is the support level on the chart, Whiles whenever the overbought region is acquired through the indicator called RSI we always assume that is the resistance level on the chart. I will be displaying a screenshot of a chart to get more understanding.

In my opinion i say YES this strategy is a good strategy for intraday traders with the following reasons.

• With the use of this strategy, traders can easily observe the oversold and overbought circumstances and this is can be observed with the benefit of the RSI, Same trendline is quickly observed on the chart with the benefit of the Ichimoku cloud.

• With the use of this strategy, traders can easily observe the support level, Resistance level, and also the approaching trend line on the chart.

• With the use of this strategy joined together, traders can easily observe a negative signal on their chart to prevent them from making a bad trade entry.

• With the use of this strategy, traders can easily observe the support level and resistance level in any type of market, That is either a market sideways or market trend, But with the trend market, the Ichimoku is usually preferred.

• For the buy trade I decided to go for the XRPUSDT chart, I set my trade at where I came across my overbought. So I placed my stop loss, Take profit and entry.

• For the sell trade I decided to go for the XRPBTC chart, I set my trade at where I came across my oversold. So I placed my stop loss, Take profit and entry.

First I would like to thank our dear prof @abdu.navi03 for coming out with such an incredible lesson full of information which I believe will help all traders. The Ichimoku together with the RSI has so many purposes so I would like to encourage all traders to join these two indicators with additional indicators, Trust me this will help to be getting an accurate outcome. As we all know not indicators are not 100% reliable it sometimes gives force signals, So we must always be careful when using indicators on our chart analysis.