Swing Trading Strategies – Gap Trading Strategy With RSI Indicator
In this Swing Trading Setup I show How to use RSI Indicator in Gap Trading.
In this trading strategy, I have covered Gap trading with RSI Indicator and I have shown how to trade gaps. I have begun this video by explaining the various types of Gaps (Common Gap, Run away Gap, Continuation Gap & Exhaustion Gap) and have suggested for a Swing Trader to target Run away and Exhaustion Trading gap for this Swing Trading strategy.
I have shown how to identify Strong Trading Gaps. In this I have emphasized upon Range of Candle and how Strongly the Gap candle closes near the high or low point of the day. I have also pointed out which Price pattern setup to target. For this trading strategy, one should prefer Price coming out of a range in the form of a Strong Gap.
In the end, I show how RSI Indicator Bullish Bearish range can be used to identify high probability setups within this Trading strategy. For Gap Up trades, one should check if RSI Indicator was in Bullish range and for Gap down trades, one should check if RSI Indicator was in Bearish range. I have summarized rules for this Trading strategy which can be used for Swing Trading Stocks.