Scalping with RSI

Simple and Effective Scalping Strategy on Solana Using WL.BOT Trading Extension

Let's look at one of the simplest strategies for quick trading (scalping) using our extension.

Why should you use WL.BOT?

• Stop-Losses and Take-Profits: Implement effective stop-losses, take-profits, and grid take-profits in live mode with your extension.

• Transaction Efficiency: Achieve the highest transaction efficiency (low gas fees and high speed).

• Market Royalties: Benefit from the lowest royalty on the market at 0.1% compared to 1% with other services.

Strategy

Steps to Set Up RSI

1. Open your charting tool and click on the 'Fx' (indicators) icon.

2. Type "RSI" in the search bar and select "Relative Strength Index." Done!

RSI Helps Traders Identify Price Reversal Moments

The Relative Strength Index (RSI) assists in detecting potential price changes. When RSI = 20, the asset is "oversold," implying excessive selling, indicating a possible buying period soon. Conversely, when RSI = 80, the asset is "overbought," suggesting that excessive buying might lead to selling soon.

For instance:

• If RSI is less than 30, the price has dropped significantly, indicating a potential upcoming increase.

• If RSI is greater than 70, the price is rising too rapidly, hinting at a possible impending decline.

RSI is a number between 0 and 100.

In simple terms, the RSI is an indicator reflecting how quickly and significantly the price is rising or falling, aiding in understanding if an asset is overbought (too expensive) or **oversold (too cheap

In the image above, you can see how the highs and lows of the RSI align with the optimal times to buy and sell tokens. This is exactly what I did—simply observed the chart, bought during oversold moments, and sold during overbought ones.

That's the entire strategy! Try it for yourself.

Setup