Topic: Bollinger Bands and RSI overbought and oversold price detection (Read 155 times)

We are saying the same thing here buddy except you didn't understand my point of view. If you are trading with RSI and Bollinger then you are just trading price action that RSI guide you to know the direction of the price if it is on overbought or oversold levels and that you can see it reflecting on bollinger bands both ways whether for overbought or oversold. And to add to this analysis, candlesticks are also coming in here to give you some affirmation like there are different types of candlesticks formation , they help to study price direction.

I have been using BB and RSI for quite sometimes now, it works effectively, but with little failure which most often got corrected if the market is not that volatile, I prefer to use 1x leverage. If the market is not favoured, I changed the leverage from 1x to 3x (the max that I can go), just to take closers the mark price I will start making profit. If the market is not very volatile, the market would correct itself and I can make some profit from the position opened. The problem I had in the past is the extreme volatile market, that go against the position opened, even taking it from 1x to 3x without no market correction makes the losses to be more. Because of this, I have prefer to just trade more in market that is not that volatile, just as bitcoin as been within $21000 and $25000 range for over a month or two months now.

Some good traders have always said that only two indicators are not enough, also people said using too many indicators can make trading analysis to become another thing that may not be helpful. Although, I prefer these two indicators, I know some pros and cons of the indicators and I prefer using it just during less volatile market. But if I want to make use of other indicators, which ones are recommendable? I am not talking about the unnecessary ones that would only complicate the ones I prefer already.

I will try MT4, but it is for forex I guess, or not for only forex? Is it having BTC/USDT or BTC/USD margin or derivative trading pair? Although, I am not planning to use it for crypto trading, I have preferred to use Binance and OKX but they are not having the features I asked above, but it can be a useful too just for notifications.

BB and RSI are trading tools that detect not only the overbought and oversold conditions of the market but also the trend, which makes them powerful. Nonetheless, they still need other indicators and strategies for better confirmation to increase their percentage of winning.

As for the bot question, I also read the post of other users, paying for the bot is not wise to me. I only know of the MT4 trading platform capable of sending such signal/confirmation to Emails and texts through EA for free. If you need an exchange with such a feature for free, it is good to inquire directly from the trusted ones you know.

RSI will work perfectly for short-term trading too, all the trader needs to do is to use the lower charts for the analysis.

Nope, I believe using them both is on different purposes too, RSI is more on or focus on the momentum indicator while the Bollinger band is something combination of volatility indicator/moving average of price, and at the same time you can also use it as for overbought or oversold indicator.
Overall, you can use them together or either of the two.
For me, these indicators is just add ons or an additional tool to help you to analyze the chart, so it's up to you.

There’s no need to choose since both works for the same purpose, if one indicator can’t tell the exact picture, then use the other and sometimes you can also combine them to get a clearer signal. Indicators are the key to succeed in trading, without that you can’t analyze that much. Learning this can be a big factor for your trading journey, better not to skip this and learn more indicators as much as possible.

Every indicators serve their purpose, if you see one indicator not fit to the chart then use the other option. RSI are more popular though Bollinger bands can also work the same, some indicators are just being used for confirmation and with that said, you can have more option to tell if there’s an overbought or oversold, the next thing to do is to look for a buying signal. Trading requires a lot of work and patience, you should also need to be wise on choosing the right indicators.

They are useful on their own purpose so if you area already familiar with those indicators, that can be a big help. Those indicators are only telling the sign of overbought and oversold, to know the current trend better to use other indicators which you can also confirm by using multiple indicators. BOT in trading can be good as well, but I don’t think there’s a bot for indicators, better to understand this manually.

I also consider the Bollinger Band and RSI as very useful indicators. 👍👍

Based on what I know, this is their purpose to know the volatility level of the market and yes this indicator can identify if the price is already oversold or overbought.
This is just one indicator but if you uses other indicator like RSI, you can confirm that your firs analysis is correct.

Now, if you want to know the next trading signal or the trend, then you can use the other indicator, this how good trading is because you can use many indicators to confirm your analysis and to complement the other indicator. RSI and Bollinger are almost the same though RSI are the common indicator to spot the oversold and overbought.

RSI can work better to know the overbought and oversold, though of course to have a clearer view it is still advisable to use other indicators. Bollinger bands can also tell this, it can measure the market volatility and of course that overbought and oversold signal, moving average can still be a big factor for this. Once you are able to spot the signal for overbought and oversold, this can be a big help for your decision making, better to take advantage the market once you spot that signal.

If you want to know how to identify overbought and over sold, you can do that using RSI. RSI and Bollinger bands are good combination of indicators, use one for the other and you can understand what you are asking. RSI personally is to know overbought and oversold. Study the candle sticks pattern and formation too, it is useful. If you study the candles on longtime formation, you can quite know when Bollinger bands is on overbought or oversold levels.

Allerts for every indicator work. you only need to add them in the first place. Just checked it and you have 1 allert for free there (good to test things out). 20 with pro (10$ per month), 100 with pro plus (17$ per month). Might in fact not be worth the money if you are not interested in other features and do crypto trading only.

I see that cryptowatch have better option for you:

"Set up alerts to monitor price, volume, SMA, and other technical indicators on thousands of markets. Alerts reliably deliver when triggered through browser, SMS, and, or e-mail. Browser alerts are free. SMS & E-mail alerts cost 1 Credit each." 1 credit = 1 cent.
https://guides.cryptowat.ch/alerts/how-to-set-alerts

But the best will be binance API to read candles (free), math formulas for indicators (free on wikipedia), BotFather on telegram (free), a little bit of effort to learn basics of python (free) and you can have your own allert tool that will send you telegram msg after triggered. But not only this. From here it's only a small step to auto trading bot that will scan dozens of trading pairs 24/7 and auto open/close position. Its a little bit of effort but I ensure you that this skill will pay out sooner or later.

I prefer to use it with 15 minutes, 1 and 4 hours candle stick chart. But being a day or more can give more accurate prediction and suitable for swing trading which I think is what you are talking about, but lower candle stick period like 15 minutes for scalpers, and 1 to 4 hours for day traders. I just know that all are good, but depending on the type of trader that you are.


I have watched the video, I am not going to try it out yet because I am not read to pay for premium service on tradingview for now, but I will still try it out once I have enough fund. I am not using tradingview, I have been using charts and notification on exchanges, but I am not seeing the importance of paying premium for candle stick analyses and notification.

The video only shows for RSI, bollinger bands is not included. The RSI price notification are set in any number ranging from 1 to 100, so when the number it is set to has been reached, their would be a notification. That is a good idea. I use RSI just as secondary indicator, bollinger band is my first, after the overbought or oversold price has been reached, then I checked for RSI. I would prefer if the notification can also applies to bollinger bands which can encourage me to for the premier one.

Are you saying bollinger band can not do the work it is meant to do? It is actually helpful for me. Any indicator can fail, they may only give certain percentage of accuracy.

Overbought and oversold can not be identified by Bollinger bands.

Bollinger bands are good to use but they can not help you to identify what trend will be a next one? Up or down, you can not get it from Bollinger bands.

You will surprise if you turn on and turn off the Bollinger bands and see that price will move up and down to previous resistance or support. Bands will be around that.

Not sure about Tradingview free (I think it has this option too), but for sure Tradingview premium and pro has this option among being the most usefull charting website. I even found a youtube tutorial for you:
https://www.youtube.com/watch?v=E2C9ntaAhXo&ab_channel=PhilakoneCrypto

This tutorial is for RSI but you can set allerts also for MACD, VOL, EMA, Bollinger Bands. Simply every indicator that is available on tradingview.

just what you need to do when there is non.

been using RSI for long term chart to make sure that its really overbought/sold in bear market. not sure also if there is a notification option for traders but most of the time i just randomly check daily and weekly chart for it. its laborious task. i can say, were already over bought. waiting for overbought might take a long while.

Trading indicators are very useful, among all, I have preferred to learn just two among the indicators, l learned both:

• Bollinger Bands
• Relative Strength Index

They are easy to know, and very useful for me, sometimes they can fail, especially if the market is very volatile and the volatility go against the position opened, but they are both very useful as it is obvious that many traders are using the indicators.

Is there any bot that I can use to know if the upper band of the Bollinger Bands has reached the overbought price, and also if the lower band has reached the oversold price?

Is there such bot for RSI too?

If there is no bot for it, is there any exchange that is trustworthy that support such features which you can set in a way an app notification, email or text message can be sent to your device? I am asking this because an email message is sent if your asset is about to get liquidated, or if take profit or stop lose has been reached, leading to closing of the position opened, or the price notification if a price target set has been reached.

Or I may not have many options than to monitor the screen anytime that is convenient for me and to also set price notification.