[00:01] use the RSI, also known as the relative strength index, so you can achieve profitability in just 30 days in a very simple way.  In this video I'm going to explain how to actually use this
[00:14] indicator and how to avoid using it incorrectly.  Many people use it by entering the market prematurely or late, and in this way they end up losing money.  If you enter earlier, you're likely to hit the
[00:27] likely to hit the stop loss because that movement has ended.  And as you know, all indicators tend to show things late, that is, what has already happened, but if we use them correctly
[00:40] we could still make money. In this video we're going to learn how to and I'll explain how we do it.  We are here at Trading Viewing the euro dollar pair on a 15-minute timeframe and the first thing we are going to do is add the
[00:53] relative strength indicator, the RSI, the relative strength index.  We enter RSI, the relative strength index will appear , we click on it and that's it.  As at the bottom.  I'm also going to add a second indicator, which is
[01:07] distinguish when a day begins and ends .  For that we're going to use TimeSom.  Let's click here where it says Times de Maga 3. We left we click here. TimeSeson.  We go into its settings and
[01:21] simply set the time from 00 to 001. This way we can know when a day begins and when it ends.  In this case, in this example of how we are going to learn to use the indicator, we are going to do it in the 15
[01:36] the 15-minute timeframe, we have a trading day begins and ends, which would basically be between gray lines.  And we have the RSI.  We are now ready to start applying this
[01:49] trading strategy that I am going to teach you to use today.  This strategy today.  This strategy basically consists of the idea that when the RCI breaks above or below its channel, which is at the
[02:01] 70 and 30 lines, it means that the price has been overbought or oversold, right?  And then the market will correct itself to relax, basically, right?  Because we are using the
[02:14] you exert too much force, you will have to rest, and if you exert too little force, you will Basically, that's how we're going to understand it .  What we learn on the internet is that when the price is at its highest point, we should
[02:28] place a sell order and simply profit from it.  When the price is at a low point, we should buy and make as much profit as possible.  Well, if we use it like that, we'll never win.  We are going to lose
[02:42] money and we are not going to achieve our goal of indicator.  And that's why today I'm going to explain how I use it so that you generating your first profits in trading or learn a new
[02:57] profitable trading strategy.  With this strategy we will focus heavily on finding divergences and convergences, but first we will explain what a divergence is.  A divergence is when something diverges, it simply doesn't match what
[03:09] should happen.  If we know that, for example, the price is going to fall because there is going to be a war and the price goes up, it means what is happening, which would basically be that the price goes up, does not coincide
[03:24] the price go down.  That's a divergence; it doesn't match what should happen.  And a convergence would be the opposite case, where a news report says that the price is going to go down and the chart starts to go down.  That's
[03:37] convergence because it exists because it basically converges, right?  So, well, that's convergence.  We are going to look for divergences because with this we will have confirmation and we will know that the market is really going to start going
[03:51] down.  We're not going to come in late, we're not going to come in early, we're going to come in right on time so we can make money. Let's apply it, for example, in the this case, the first thing we're going to look for, rule number one,
[04:05] is overbought.  When the price is at the top of the channel and stands out, it means we have overbought conditions.  We then identified it on the graph, which would basically be this peak we have here.  We draw this
[04:18] peak we have here.  We draw this line to the right and we'll have this other peak over here.  As we can see, the first peak is at the top of the RCI, it's this peak we have here.  But the second one, despite being
[04:30] even higher in that little wick, in the RCI we see that it doesn't even appear, it's not even close to the previous one.  And here we already have our first divergence.  Because? because it's not coinciding with what's happening in the market.
[04:43] We can clearly see that the price is rising here and falling in this area.  This should always coincide: if the price is rising , the RSI, the indicator below, should also rise.  And the same applies to
[04:57] the downside; if the price is falling, the RCI should decrease.  When we find this, which is the divergence, we will be very happy, very pleased, because we are very close to making money.  So, when we
[05:09] identify this peak and see that it is being manipulated, but at this peak we have here, we see that it is not being manipulated and we find that divergence, we are going to place our trade.  But when and where?  Well, for this we're going to go
[05:21] down to the temporal aspect.  Remember we were in 15 minutes.  Let's lower the time frame, for example, to 5 minutes, and let's look for a reason to place our trade.  Here we can see that we have an imbalance in
[05:35] an imbalance is, it's simply a candle that isn't covered on its left and right side by the adjacent candles.  This space is known as the Far Value Gap, also known as FBG, also
[05:47] known as imbalance, and it is a very good area to place our other concepts such as, for example, classic order blocks, breakout order blocks , kyer blocks, continuity order blocks, and well, any reason
[06:00] we can find to place our trade, and even a be used, or any other concept we know.  All of these are you can learn each of these concepts separately.  I'll leave you with this one
[06:13] in this example.  And also check out the orders section on my channel so you have everything fresh in your mind and can apply the said, here we have the FBG, which we're basically going to mark here.
[06:26] on its left and right sides, neither by the body nor by the wick of its joint candles.  So it tends to be a magnet, let's say, right?  The price is usually happened there is that the price moved so fast that it didn't manage to execute all the
[06:40] orders, right?  Neither for purchase nor for sale. Then the price returns, it completes those orders and continues.  It's like an order block, a different liquidity zone , but in the end it's the same thing.  In the end there is liquidity, in the end there are
[06:54] orders, so more or less not anymore. Okay, once we identify this the price returns to that zone, I'm going to place my trade and it would be a great point to place the trade."  Additionally, we could put it in the order block area.  As we
[07:07] can see, we have this much smaller movement than this one, and we have a classic order block here that also coincides with that imbalance. In other words, we have a point that is crossing, we have both an order block and an FBG
[07:20] at a key point to place our trade, and in this way we could now place the order correctly.  We must wait for that manipulation, after this divergence that we have marked, the price
[07:32] to move down and when it rises to one of these zones, which would be our trade.  We're going to do it directly in the FBG or in the area where the order blockbg coincides, right? In this case, we click here,
[07:46] place the stop-loss at the top, always give it some breathing room, and then we go to find our take-profit.  And now there are several ways to get to our TP.  There's no need to always go one by one, an A2, an A3 without having a real reason to
[07:59] go to that point to seek our profits.  For that, we're going to base it on different things.  We can open our trade up to the previous liquidity portion liquidity zone we have here, which is this wick, we mark it here, we
[08:13] this point is very likely to be exceeded to take liquidity.  If we enter this operation like this we can go from 1 to 2.9, that is, if we risk loss that we have up here, we would be going for 2.91%.  If you don't
[08:29] , I've also included a video above so you can learn how to calculate lot size, which is very important because even with you don't have risk management, you won't be profitable.  Yes, profitability is
[08:42] generated by risk management, not solely by strategy; can be profitable as long as it has risk management.  I passed through a funding account, I generated 10% in a month without a strategy, I flipped a
[08:55] coin every day and only applied risk management.  I'll also leave the video watch it.  Well, this way we'll be able to define our takepr.  We can , always a little further.  We can do it up to an order block, for
[09:07] contrarian candle before this strong move.  This could also be a very basically we'd be going from one extreme to the other, wouldn't we?  And we could also go for our take profit when the RCI breaks out of its channel again.  In this
[09:24] case we would have reached the TP around here, more or less around here.  Yes. And so more or less around here.  Yes. And so we were at 1 to 3.52.  In other words, we were at 1 to 3.52.  In other words, excellent.  We risked 1% and were going for 3%.
[09:37] 3.5%.  Well, that's how we should use it.  Let's look for see it too.  And other types of divergences that we can find with the RCS that are not very common, that are not usually explained much, but that are
[09:50] all the drawings we have here. We're going back to the 15- minute timeframe and then we're going to look for a different kind of divergence.  Here we're going to see that we have, for example, this peak that we have down here,
[10:04] right?  In this area here we see that in the future it will be used as a where the price bounces, which I don't really like using support and resistance levels and relying on ceilings and floors, because those things don't
[10:18] work anymore.  That has worked for a very long time.  It's a shame I didn't know about it and was too young at the time to have taken advantage of it, but today we can apply it in another way that is quite similar, but makes much more sense.
[10:31] Here we see this floor that would become this ceiling, but if we go a little deeper and use other terms, we'll see that we have an order block here, that we have the last opposing candle, and
[10:43] price is bouncing off that order block; it's not bouncing off a floor, it's bouncing off an order block.  That order block was a buy order block, it broke in this area and became a sell order block.  That makes it a
[10:57] failing order block.  It was a purchase, it is overcome and then when touched on the other side it also reacts.  That's a broken orderlock.  That point, basically this area where we have this imaginary line where the price is
[11:12] bouncing, we're going to have to look for it in the RSI as well.  We can see in the RSI as well.  We can see that this floor is basically this one we have here and it's not coinciding with these ceilings that would be bouncing
[11:24] right on that line.  What's supposed to happen here is something like this, right?  The price should have done this, it should have gone down and bounced back up, and that's not what's happening.  There we also have a
[11:36] different kind of divergence, but it is still a divergence.  In other cases we will find it, for example, we could look for it.  Let me give you an example, if I show you, where we have convergence and not divergence, for
[11:49] example, this one, where we have this peak over here, we move to the right.  And the same if we do it this way, we see this peak over here and we head to the right.  We see that the price went down, through it, and then found support.  Here we have
[12:02] through it, and then found support.  Here we have the same thing, it went down, crossed it and then didn't quite reach the ground .  There is a slight divergence; there is almost never 100% convergence, but this would also be a convergence in broad terms, would
[12:17] n't it?  The price ends up finding support in the same area and ends up bouncing, in this example here.  We can also use those cases and open trades at those times when we have these types of
[12:31] divergences.  using the same rules.  Basically, we see that the price ends up reaching that zone even though it does n't reach it here.  We have a low peak coming out of the channel.  Here we see that it is not being respected, we clearly have a
[12:44] very large divergence, we go down to a smaller timeframe and what we would look for is for the price to reach a reaction zone.  What would be the our operation?  Well, clearly it would be this little green candle we have
[12:57] here, this little green candle we have here is a continuity order block .  If you don't know what a continuation order block is, go watch my video to learn about it, but in simple terms, it's a contrarian candlestick that
[13:10] appears in the middle of a trend and helps to break the previous low or high .  In this case, this continuation candlestick is helping to break this low we have here.  And that's why after that candle, the price
[13:22] can break out of this zone here with this little candle.  Then, when the price reaches this candle again, which would be the continuation order block that helps break this low around here, we'll expect the price to bounce.
[13:34] Then we could open our trades at these points where we have the order lock, the stop loss always on the upper side or even up to a new high like this candle here, this imbalance, right?   We
[13:46] basically always give him a break.  And what we do now is look for our take profit.  Our take profit can always be, as I say, the last to two, which is great for our risk management.
[14:00] They will also learn risk management separately.   It is always advisable to go for more than one, go get two.  In this way, losing 65 out of every 100 trades could still be profitable, because by winning only 35 out of 100
[14:14] trades, you would be generating 70%, while losing 65% and still only making a profit of 35% for every number of trades you can think of, you would still be 5% profitable in 100
[14:29] risk management is very important, as you can see, it's more important than the strategy itself. And if not, they could go until the price breaks out of the channel again, as I mentioned, which would be perfect for this example, since we could go, well,
[14:43] coincides with our previous take profit of the liquidity zone. I always want a little more liquidity, you know, a little bit more, 2.5 wouldn't have well.  And now all we have to do is replicate this strategy every day
[14:56] on our account to start making money with trading.  If you are going to trade this strategy, I recommend doing so on Exnes.  Exnesses is one of the best brokers, and it's not just the best broker globally, but also
[15:08] the number one liquidity provider for Metatrader.  Metrer is the number one platform chosen by all serious traders on the planet, and you could trade on that platform with the
[15:23] ECNES link, which I've included below in the description, you won't pay any commissions for 40%, which is amazing.  Furthermore, it has accounts where you don't pay commissions at all and you only have to pay the spread.  And you'll
[15:37] also get a 40% discount on that spread, which I would get paid for, give it to you as a discount as long as you use the link in the broker, the link, as I said, is in the description.  You will be able to create your
[15:52] account easily.  You have to put in four or five cent accounts to start practicing.  This would be good to complement this strategy and be able to practice it with pennies.  Basically, you deposit $10 and it appears as if it were $
[16:05] 1,000, that is, it appears in cents, right? But you can operate as if it were a you can thoroughly test risk management, strategy, and so on, without risking real experience and, for better or worse, make some money, right?  Maybe you'll do
[16:19] 10%, well, it wouldn't be anything, but you'd still be learning and practicing how to use this platform.  If you'd like me to use sent accounts, cent accounts, like the example I gave you at the
[16:31] a future video about it. I hope you really enjoyed really high quality, it's very good, it's a great starting point for getting into trading and it's trading strategy, which you can learn in my academy, which I've also
[16:45] description so you can request information and join my academy.  At my academy we have real and very good results, so if you want to join, you will be able to have results like all these and be one of my next students.
[16:57] Remember that I am Matías Maderna. You can watch me trade live every day from Monday to Friday in the New York session.  And you can also see me in an button down there.  See you very soon in the next video.