Coinrule has now launched the ability for users to utilise MA and RSI increase and decrease within their rules, giving you even more customisability!
What are RSI and MA?
The RSI, or relative strength index, is a technical indicator frequently used in trading. It works by measuring the speed and change of price movements to determine whether a coin is oversold (indicating a good entry point) or overbought (indicating a point of exit/entry for a short position). The RSI oscillates between 0 and 100 and is traditionally considered overbought when over 70 and oversold when below 30. Essentially an overbought coin is considered more expensive than it should be, and an oversold coin is considered cheaper than it should be. When the RSI of a coin reaches these two key levels, it indicates that it could be primed for a trend reversal, marking a good potential entry/exit point.
MAs, or moving averages, are among the most common trading indicators. They are straightforward to interpret and effective to use. They work by taking the averages of a specified number of price periods. For example, MA50 takes the average of the previous 50 periods. MA9 (the average of the previous nine price periods) reacts very fast to price moves providing prompt signals. On the other side, more signals may result in more false signals and more trades in a loss. On the contrary, moving averages calculated with a higher number of periods like the MA100 (which considers the previous one hundred price periods) give more reliable signals, but with a delay.
Coinrule previously had support for MA and RSI, so what’s new?
Our latest update allows users the ability to set a condition for RSI to increase/decrease by a specified amount within a timeframe:
For example, if the RSI increased by 5 points within a short space of time (e.g. 15 minutes), it could show that the coin has strong momentum. This could act as a potential indicator for an entry point as the coin could continue to perform well. Conversely, if the RSI decreased by 5 points within a short time frame, it could act as an indicator to exit a position. You could also use this as an indicator to enter a short position on some of our leveraged exchanges.
Similarly, users can also set conditions for a moving average to increase, or decrease, by a specific percentage, USD, or BTC value, giving users even more customisability with the MA conditions in their rules:
We hope you enjoy the new features! Happy trading!