How to Buy Low and Sell High using RSI and MACD Indicators

Here's my basic tutorial on how to use RSI and MACD indicators to help you time the market and buy low and sell high. This is going to save you thousands of dollars over time!

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Some of you have been curious about my trading setup and how to use RSI and MACD to time the market better. These are very powerful strategies that most serious investors use for one simple reason: they work! And the best part is you don't even need to be an expert. With just basic knowledge, you can avoid most of the big costly mistakes. It doesn't mean you'll never be wrong but you'll improve your batting average.

Quick recap: RSI stands for Relative Strength Index and helps you understand the strength of a market movement. Above 70 it's considered overbought, and under 30 it's considered oversold. This gives you a general guideline of how much buying or selling pressure a stock is facing.

MACD stands for Moving Average Convergence / Divergence and is a momentum indicator I use to see the direction of a stock as well as changes in the momentum. It's pretty self explanatory - when the line is above the average it means the buyers are in control, when it's below it means sellers are in control and when it's flat it means neither of them are very strong or weak.

By themselves RSI and MACD are okay but not amazing. There are just too many scenarios where they don't tell the whole picture and you would be making a lot of mistakes if you only relied on them. However if you combine both with a broad view of what's been going on with the stock then the chart will talk to you and tell you a story. You just have to base your trades on what the story tells you.

So.. think about it, when RSI is very oversold and MACD tells you that buyers are taking over then you know the stock price will likely be going in an uptrend and it might be a good time to buy. The opposite is also true, if RSI is overbought and MACD starts shifting to seller pressure then you should probably sell, not follow the herd and open your position.

Let me know if this helps and if you have other questions!

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DISCLAIMER: I am not a licensed financial advisor, CPA, attorney, etc. I do not know you or your personal situation. All investments involve some risk, and you should always consult with a licensed professional when in doubt.
These videos represent my views and opinions only and should NOT under any circumstance be considered financial advice. I am simply chronicling my journey to financial independence and giving my thoughts on various investments and strategies. They may or may not be applicable to you.
These videos represent my views and opinions only and should NOT under any circumstance be considered financial advice. I am simply chronicling my journey to financial independence and giving my thoughts on various investments and strategies. They may or may not be applicable to you.

Видео How to Buy Low and Sell High using RSI and MACD Indicators канала Patrick Desjardins