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!

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