RSI > 80 & MTF > 80 ( Bear & Futures Market )
RSI-Based Strategies
Signal Name: MAGIC RSI < MTF RSI > 80 Futures Short Buy Signals
Description:
This signal identifies potential short buy opportunities when the RSI (Relative Strength Index) on higher timeframes (MTF RSI) exceeds 80, indicating an overbought condition. The short signal is further confirmed on shorter timeframes like 1m, 5m, and 15m, making it highly effective for scalping and short-term trading in the futures market.
Key Features:
- Overbought Confirmation:
- RSI greater than 80 signifies a potential price reversal due to overbought conditions.
- Timeframe Synergy:
- Monitors timeframes including 1m, 5m, 15m, and 1h for precise entry points.
- Market Compatibility:
- Specifically designed for Binance Futures trading pairs.
Recommended Strategy:
- Entry Point:
- Enter a short position as soon as RSI crosses below 80 after reaching overbought levels across multiple timeframes.
- Risk Management:
- Place stop-loss above recent resistance levels to minimize downside risk.
- Validation:
- Pair this signal with other indicators like Bollinger Bands, MACD, or Volume to confirm market momentum.
Important Note:
This signal is best used as a supporting indicator. Always consider market trends, price action, and other technical tools for comprehensive decision-making to avoid false signals and improve trading outcomes.
