Two fundamental pillars of technical analysis: the Relative Strength Index (RSI) and Bollinger Bands. Both indicators, individually, have been reliable tools in the hands of traders for decades.
But... what if you could combine them and use them as one? Artificial intelligence and cutting-edge optimization working for your success.
What is Buy or Sell Estimation A.I.
Our Buy or Sell Estimation A.I. represents a leap forward in the world of trading indicators, taking proven and reliable tools to a new level through an intelligent combination and possible implementation of advanced techniques.
In our trading strategies, we have recorded an invaluable advantage in increasingly complex and competitive markets: the handling of time and real-time information and data processing.
In addition to being versatile and adaptable, we developed it with an eye to the trader's complete experience from the first moment he sees the screen until he enjoys the success of the trade.
Statistically, our decisions have been 50% more accurate even considering that, of course, these often suffer several modifications and changes of approach by the market that we already know how it can fluctuate (especially if we talk about crypto).
What is so innovative about the Buy or Sell Estimation A.I.?
The power of Artificial Intelligence (AI): although the name of the indicator suggests the incorporation of AI, this specific code does not show the direct implementation of AI techniques. However, the name could hint at advanced optimization or future implementations of machine learning algorithms to further enhance the signals.
Powerful Indicator Fusion: The fusion of RSI and Bollinger Bands is not common. This combination seeks to take advantage of the best of both worlds: the RSI's ability to identify overbought and oversold moments and the determination of volatility and potential reversal points of Bollinger Bands.
Additional Layers of Validation: By incorporating multiple factors and algorithms into its design, the indicator can reduce false signals and improve accuracy.
How the Buy or Sell Estimation A.I. works
It uses a modified and boosted RSI to identify overbought and oversold conditions.
Let's talk briefly about the RSI and Bollinger Bands:
The Relative Strength Index or RSI indicator measures the strength with which prices are rising or falling.
When the RSI is above 70, the market is considered overbought and a downward reversal is likely. When the RSI is below 30, the market is considered oversold and a reversal to the upside is likely.
Bollinger Bands come into play as a complement to measure market volatility. When the asset price is within the bands, the market is considered to be relatively calm. Otherwise, when the asset price is outside the bands, it is considered that the market tends or will tend to be more volatile.
Our Buy or Sell Estimation A.I. combines the signals from the RSI and Bollinger Bands to generate a buy or sell signal. When the RSI is oversold and the asset price is outside the bands, the indicator generates a buy signal. Conversely, if the RSI is overbought and the asset price is inside the bands, the indicator generates a sell signal.
Some frequently asked questions about the Buy or Sell Estimation A.I.
Is it suitable for beginners?
It is a powerful tool, but it can be complex to understand and use. Therefore, it is important for beginners to have a good understanding of the basics of technical analysis before using the indicator. We are always just a click away to support you with whatever you need.
Is it applicable to all markets and timeframes?
Yes, it responds to various markets and timeframes, but you should keep in mind that the signals may vary in effectiveness depending on the context.
Is it necessary to use other indicators along with this one?
We are confident in the great power it has on its own, but combining it with other indicators can improve signals and reduce false signals.
How are buy and sell signals determined?
Buy signals are generated when the RSI is oversold and the asset price is outside the bands. Sell signals occur when the RSI is overbought and the asset price is inside the bands.
Why does my indicator look different from another trader's?
You can customize the Buy or Sell Estimation A.I. to suit your preferences and trading strategies. Therefore, it is possible that your indicator has its own originality.
Does the indicator generate a lot of false signals?
Like most technical indicators, it can generate some false signals. It is important to take advantage of its full potential together with other tools and analysis to reduce this margin of error.
If you are interested in learning more, we are happy to tell you all about it here.
Leave us all your questions in the comments and see you soon!
REFERENCES
For this article, prompts have been used to request information
interpreted and provided by AI (Google Bard). Written and edited
by Kevin David TerƔn and verified by Pedro Arizaleta and Erwin SƔnchez
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