Take Advantage of Breakout Signals

1.Among the strategies using RSI, there is a strategy to buy when RSI breaks above the stop value of 50 and sell when it breaks below.

2.This is not a strategy I would recommend because it is too late to use it as a buying or selling point due to the nature of RSI going back and forth between the upper and lower peaks, and there is no guarantee that the direction of RSI will continue when it breaks through.

3.However, as shown in the picture, when RSI moves sideways for a long time near the middle point of 50, it means that it is in a convergence phase, and when it bends downward in the yellow circle, it means divergance, so be careful in this case.

4.After convergence, you need to consider buying if the price is upward, and selling if it is downward.