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RSI with SMA + 70/60/50/40/30 Levels

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Indicator Name:

RSI with SMA + 70/60/50/40/30 Levels

🧩 Concept Overview:

यह indicator दो popular tools को combine करता है:

RSI (Relative Strength Index) – momentum indicator जो market ke overbought aur oversold zones ko identify karta hai.

SMA (Simple Moving Average) – trend smoother jo RSI ke movement ko average karke lagging confirmation deta hai.

इन दोनों के साथ 70, 60, 50, 40, और 30 की multiple reference lines draw की जाती हैं, ताकि trader को RSI ke swings aur reversals easily samajh aaye.

⚙️ Indicator Components:

RSI Line:

Default Period: 14 (customize kar sakte ho).

Show karta hai price momentum – agar RSI 70 ke upar jaata hai to market overbought zone me hota hai; agar 30 ke niche jaata hai to oversold zone me.

SMA on RSI:

RSI ka smooth version (usually 9-period SMA).

Trend confirmation ke liye – jab RSI line SMA ke upar cross karti hai to bullish signal, aur neeche cross kare to bearish signal.

Horizontal Levels:

70: Overbought zone (potential sell area).

60: Strong bullish momentum line (trend confirmation).

50: Neutral / midline (trend direction flip area).

40: Weak bearish zone (trend losing strength).

30: Oversold zone (potential buy area).

💡 How to Use:

Trend Identification:

RSI > 60 aur SMA ke upar → Bullish trend.

RSI < 40 aur SMA ke neeche → Bearish trend.

Reversal Spotting:

RSI 70 ke upar jaake wapas niche aaye → Sell signal.

RSI 30 ke neeche jaake wapas upar aaye → Buy signal.

Confirmation Using SMA:

RSI cross SMA from below → Confirmed bullish reversal.

RSI cross SMA from above → Confirmed bearish reversal.

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