
Level 11 introduces a deep dive into candlesticks with RSI, focusing on mastering reversals and the RSI equation.
Define trends by the daily middle band slope of Bollinger bands and distinguish reversal from continuation trades; size positions with 100% of normal for continuations and 50% for reversals.
Learn how the relative strength index (RSI) is calculated from average gains and losses to form a 0-100 momentum gauge, with three main applications: divergence, overbought/oversold, and trend lines.
Explore how RSI acts as a leading indicator on daily charts, signaling buy opportunities when RSI falls below 30 and sell signals above 70, with confirmations to avoid premature trades.
Explore how the RSI acts as a coincident indicator, aligning price turns with candle data, and contrast its responsiveness with Bollinger bands in level 11 of the Japanese candlesticks program.
Master W bottom setups with RSI divergence, Bollinger bands, and bullish engulfing patterns. Adjust normal 0.5% position size to 25% to 75% based on divergence and candle patterns.
Identify a W bottom with RSI bullish divergence and a bullish candle pattern, confirmed by price testing the lower Bollinger band, signaling strong upside potential.
Identify a W bottom setup with a bullish engulfing pattern confirmed by RSI divergence and a test of the lower and middle Bollinger bands, then enter long with risk management.
Explore how a classic RSI bullish divergence at a W bottom, plus a bullish engulfing pattern, signals an uptrend guided by middle and upper bands and disciplined exit rules.
Explore an RSI bullish divergence with an outside divergence and a bottom, illustrated on Castrol India's daily chart, and initiate at 75% of normal position size.
Examine a w bottom without a candle pattern on a daily Britannia chart, note RSI divergence as price falls between two lows, and size 75% when no pattern forms.
Analyze an upside thrust with an RSI bullish divergence on Oracle's daily chart, confirming a rising window and candlestick rules while applying position sizing and risk awareness.
Explore RSI divergence without a W bottom and manage risk with 50% position sizing, using candle patterns and Bollinger band signals.
On a daily Netflix chart, identify a hammer without a W bottom, observe RSI divergence, and use price confirmation from the next candle to validate a cautious 50% position entry.
Identify RSI divergence on a daily Airbus chart across global markets, where price falls while RSI rises, with a wool sash pattern and strong opening guiding 50% position sizing.
Limit risk to 25% of your normal position size, especially when price shows RSI and RC divergences without a bottom or candle pattern.
The lecture analyzes a cautious trading approach, highlighting RSI divergence and a falling window, showing how weak signals and luck can mislead; it emphasizes risk control and level two concepts.
Explore a low probability setup on the daily Etherium chart using RSI and RC divergence with incomplete W bottoms, using 14-period RC and default Bollinger bands (20, 2).
master the perfect triple top with bearish RSI divergence, using a bearish engulfing confirmation and scalable position sizing to capitalize on high-probability short setups.
Identify the lower second top inside the upper band to form a triple-top. Confirm with RSI divergence, shooting star, and bearish engulfing patterns, then trade on a neckline break.
Identify a triple top with a shooting star at the third top, RSI divergence, and a positive-slope neckline; enter short on the close that breaks the neckline and risk 100%.
Master the triple top without a candle pattern, using RSI divergence to confirm reversals. Limit risk to 75% and place stops at the high or upper band, watching the neckline.
Analyze Lupin daily chart showing lower highs on the RSI and a triple top with RSI divergence. Apply a conservative stop loss at the upper band when the neckline breaks.
Demonstrates a non-ideal triple top with rsi divergence on a daily Procter and Gamble chart, highlighting neckline breach, upper band considerations, and conservative stops to avoid broken trades.
Learn to reject a false triple top, using RSI divergence and a bearish candle pattern (bare sash/bearish engulfing) to take a half-size short entry with trendline considerations.
Explore a daily ExxonMobil chart to identify long period divergence with RSI divergence, a bearish engulfing pattern, and a trend line break signaling a short trade with 50% position risk.
Identify why a third top fails as a triple top using strong openings, RSI divergence, and rising windows; risk only 50% of your position size.
Learn to trade the break of the middle band using RSI divergence, with no candle pattern and a 25% position size risk, as shown on Ambuja Cement's daily chart.
Learn to manage risk with a conservative stop level on daily charts, risking only 25% of your normal position size when RC divergence guides the trade.
Identify reversal signals using W bottoms and triple tops with RSI divergence and Bollinger bands, culminating in a short signal below the lower band and disciplined risk management.
Learn how the RSI trend line upside breakout serves as a leading indicator that precedes or coincides with price trend line breakout, enabling bullish trade setups.
Explore how the RSI trendline breakout acts as a coincident indicator with the price breakout on the same candle, using bullish engulfing patterns, stop loss, and exits with Bollinger bands.
Identify a valid price trend line tested ten times, then observe a breakout aligned with an RSI trend line, confirming a bullish reversal through W bottom and RC divergence.
Identify a coincident breakout on the us yen chart, with price and RSI trend lines, RSI breakout, bullish RSI divergence, a piercing pattern, and price confirmation to go long.
Explore upside breakouts with a multi-tested RSI trend line and price trend line, showing a leading, coincident indicator that signals a long entry with a guarded stop.
Analyze drawing price and RSI trend lines, test breaks, and spot bearish divergence with a downside breakout. Time exits using Bollinger bands and a close above the middle band.
Draw a valid trend line from two lows and spot a falling window with an RSI breakout. RC divergence and the window’s resistance confirm a strong short setup.
Learn how a trendline on the euro/usd daily chart is tested nine times and how the RSI breakout precedes the price breakout, signaling timely short entries.
Identify the imminent breakout using a multi-tested angled trend line and confirm with a coincident price and RSI breakout, then observe RSI divergence to support a bearish view.
Demonstrates placing a conservative stop loss on a daily CAD chart, using a break of a tested trend line confirmed by RSI and Bollinger bands to guard against throwback rallies.
Learn to confirm upside breakouts with RSI strength, compare RSI on breakout candles to prior highs, and choose conservative stops using the middle or lower Bollinger bands.
an example daily Tesla chart shows a rising window at breakout confirmed by RSI, with a bullish engulfing pattern and riding the middle Bollinger band for potential gains.
Identify rising window breakout setups on a Sysco daily chart using RSI strength to signal long entries on red candles after resistance is broken.
Analyze a daily Pepsi chart to assess RSI strength at a breakout from a multi-tested resistance. Note the change of polarity and place tight stops near the breakout candle.
Learn to spot breakouts with patience by analyzing resistance, RSI above 70, rising windows, and false breakouts; wait for confirmation, use rising window as support, and place conservative stops.
Identify downside breakouts in Japanese candlestick trading by watching red candles break support as the RSI falls below its reference line, with exits guided by the middle Bollinger Band.
Examine two falling window breakouts with RSI confirmation on a daily chart, using a multi tested support line that breaks to signal a bearish short setup.
Identify a clear market weakness after a daily chart breaks the support, with RSI around 60 on the run-up and under 40 at breakout, guiding a short via Bollinger bands.
Watch Mitsubishi's daily chart shows an aggressive downside breakout after a green candle forms a support at its low, with RSI below 30 and a box-range.
Identify a box range breakout on the daily gold chart confirmed by RSI weakness, projecting a downward move with RSI around 30 and exit rules.
Study the RSI upside failure swing, a Wilder-documented setup using oversold RSI below 30 and two failed bear moves, with rising window, resistance breakout, and conservative stops.
Spot the upside failure swing when RSI dips below 30, tests a blue resistance line, then breaks out as it moves above 70 for a long trade.
Discover how a failure swing confirms a base formation across markets as RSI moves back above 30. Learn to ride the breakout and exit with the middle Bollinger band.
Identify an upside RSI failure swing by RSI dipping below 30, bulls lifting RSI, breaking blue line, and a rising window with RC failure, then enter on candle close.
Execute an RSI failure upside swing after a brief sub-30 dip and higher low, then a break above. Set the stop at the Bollinger middle band and exit on gravestones.
Identify the downside RSI failure swing: RSI rises above 70, then breaks the blue line and bulls fail twice, signaling a short setup as price trends downward.
Spot a downside failure swing in RSI to signal short entries in a downtrend when the price breaks the blue line, emphasizing 20-trade sample analysis.
Identify a bearish divergence confirmed by a failure swing using RSI, signaling a continuation downtrend with a clear short setup, stop loss, and Bollinger bands guiding trend confidence.
Analyze a daily Volkswagen chart to identify a failure swing and two bulls' failures alongside a falling window that signals short entry at the opening price, confirming a bearish outlook.
Follow the failure to swing criteria in a continuous market, using RSI around 70 to signal a short entry, a method documented by Wells Wilder.
Explore powerful RSI signals by combining bullish divergence with bullish engulfing patterns, using RSI levels around 30 and 70 as confirmation, plus W bottoms and candle patterns.
Analyze a Microsoft daily chart showing an RSI bearish divergence with a bearish engulfing pattern, illustrating how candlestick signals align with western technical analysis.
Learn to spot RSI bullish divergence without candle patterns, using a four-step method with false breaks to validate supports and enter long trades with clear stop-loss levels.
Learn to identify RSI bullish divergences without a W bottom, evaluate Bollinger bands signals, and apply rule-based exit strategies to manage risk and maximize reward.
Spot a bullish RSI divergence confirmed by a bull harami to anticipate rising prices. Combine candles, Bollinger bands, RSI, and ADX for confirmation and practice smart exits like partial profits.
All the Levels of The Japanese Candlesticks Trading Mastery Program are designed to help you :
Learn How to Trade Stocks, Forex & Commodities Using Candlesticks & Technical Analysis to Become a Professional Trader
This is going to be more like a sequel to the Level 10 course.
In level 10, I argued that, we can take a normal position size on a continuation trade, but half position size on a reversal trade.
This concept gets modified, the moment you add something called as RSI on the reversal trade, because now you have additional confirmation.
In this level, we are going to take a deep dive into the RSI, because it is one of the most widely used, popular, yet widely misunderstood and under-utilised indicator.
The RSI is one of the simplest, yet one of the most powerful indicators ever invented in technical analysis.
My goal for Level 11 is to help you understand each and every aspect of RSI, and how it can be an extremely powerful tool in your trading arsenal, especially helping you build confidence while going for the reversal trades.
Here the sub-topics covered in the course: [12 sections]
Introduction
Introduction
The 2 Types of Trades & Position Sizes
The RSI & its 3 Main Applications
RSI as a Leading Indicator
RSI as a Co-incident Indicator
W Bottoms & RSI
The Rules
The W Bottom & RSI Bullish Divergence
The Bullish Engulfing Pattern at a W Bottom
A Classic RSI Bullish Divergence at a W Bottom
A RSI Bullish Divergence without a Candle Pattern
A W Bottom without a Candle Pattern
An Upside Thrust with a RSI Bullish Divergence
RSI Divergence Yet Not a W Bottom
The Hammer without a W Bottom
The Importance of an RSI Divergence
The Importance of Position Size
The Importance of Being Cautious
Trading a Low Probability Setup
Triple Tops & RSI
The Perfect Triple Top with RSI Divergence
The Lower Second Top
The Shooting Star at the Third Top
The Triple Top without a Candle Pattern
Lower Highs on the RSI
The Non-Ideal Triple Top with RSI Divergence
This is Absolutely Not a Triple Top
The Long Period Divergence
A Strong Opening at the Third Top
The Break of the Middle Band
Always Keep a Conservative Stop Level
The Short Signal Below the Lower Band
RSI Trendline Upside Breakout
RSI Trendline Breakout as a Leading Indicator
RSI Trendline Breakout as a Coincident Indicator
The Multi-Testing Price Trendline
Price Confirmation of a Candle Pattern & RSI Breakout
The Multi-Tested RSI Trendline
RSI Trendline Downside Breakout
The RSI Breakout after a Bearish Divergence
The Falling Window RSI Breakout
The Trendline That Was Tested 9 Times
The Imminent Breakout
The Importance of a Conservative Stop Loss
RSI & Price Upside Breakout
The Classic Price Breakout Confirmed by RSI Strength
The Rising Window at a Breakout Confirmed by RSI
Another Classic Rising Window Breakout & RSI
The Importance of RSI Strength
The Importance of Patience at a Breakout Area
RSI & Price Downside Breakout
RSI Falls Below Reference Line at a Breakout
The 2 Falling Window Breakouts with RSI Confirmation
A Clear Weakness in the Market
An Aggressive Downside Price Breakout
The Box Range Breakout Confirmed by RSI Weakness
The Upside RSI Failure Swing
The Rising Window at an Upside Swing
The Failure Swing at a Crucial Turning Point
The Failure Swing Confirming a Base Formation
The Correct Identification of a Failure Swing
Wait for a Failure Swing Confirmation
The Downside RSI Failure Swing
The Downside RSI Failure Swing
The Power of a Failure Swing Point
The Bearish Divergence Confirmed by a Failure Swing
The Falling Window at a Failure Swing
The Importance of Following a Criteria
The Most Powerful RSI Signals
The RSI Bullish Divergence & a Bullish Engulfing Pattern
The RSI Bearish Divergence & a Bearish Engulfing Pattern
The RSI Bullish Divergence Without any Candle Pattern
The RSI Bullish Divergence without a W Bottom
The RSI Bullish Divergence & a Bull Harami
Premature RSI Signals
The RSI Sell Signal at the Upper Band
The RSI Sell Signal at a Rising Window
The RSI Sell Signal at the Start of a Rally
The RSI Buy Signal at a Falling Window
The RSI Buy Signal at the Middle of a Downtrend
Spot the Pullbacks Using the RSI
The Weekly Bearish Pullback Confirmed by Daily RSI
The Incredible Bullish Move After the RSI Cross
Learn concepts that apply to any type of trading. If you know how to read one chart, you can read them all. This course through its various levels will help you understand this unique and most primitive technique of trading. The Japanese Candlesticks Trading Mastery Program can be applied in any or all of the following areas of work :
Forex Trading / FX Trading / Currency Trading
Stock Trading
Commodity Trading
Options Trading
Futures Trading
Intraday Trading / Day Trading
Positional Trading
Swing Trading
Technical Analysis of Stocks, Commodities & Currencies
Price Action Trading
Chart Pattern Analysis
Cryptocurrency Trading
Standard Disclaimer: I am a SEBI-Registered Part-time Research Analyst (Registration No. INH000022279) registered under the SEBI (Research Analysts) Regulations, 2014, and supervised by the BSE Research Analyst Administration and Supervisory Body (RAASB). All content shared by me across my digital platforms is strictly for educational purposes only and should not be considered as investment advice, buy/sell recommendations, or trading tips. I do not provide personalized investment advisory services, I do not publish research reports, and I do not make buy/sell or price-target recommendations. My content is limited to an educational purpose only and does not constitute a research service or any other activity regulated by SEBI under my Research Analyst registration. Any securities or instruments referenced are used purely for education, analysis, and illustration and must not be construed as a solicitation, recommendation, or advice to buy, sell, or hold. Investing and trading in securities involve significant risk, and past performance is not indicative of future results. Please conduct your own due diligence or consult a qualified, appropriately registered financial adviser before making any financial decisions. I may or may not hold positions in the securities discussed at the time of creating the content, and such positions are subject to change without notice. I do not receive any compensation from third parties, including MarketSmith or Steve Nison; I have completed the basic and advanced candlestick modules on Steve Nison's platform purely as a student and am not affiliated with him or his website in any way.