Reversal Strength Strategy (RSS) Explained

The Basics: Reversal Strength Strategy

The reversal strength strategy aims at finding a suitable reversal entry. To do so, it gathers information from different indicators in order to evaluate the potential for a reliable reversal move to happen. If the reversal movement checks the required criteria, the strength is sufficient to enter a position. A single position is used. Once the position seems to have extinguished any potential for reversal or if the reversal happened and seems to have less momentum, an exit is performed.

Choosing the 1-Minute Timeframe

Reversals happen quickly in the crypto market, so the timeframe should be at most the 1-minute timeframe.

Practical Tools: TradingView and APIs

TradingView for Market Analysis: TradingView offers the necessary charts and tools to analyze the market within a one-minute window. It is invaluable for monitoring trends and volatility, aiding in timely decision-making.

APIs for Ease of Trading: APIs from cryptocurrency exchanges automate the trading process. They execute pre-set buy and sell orders, adjust strategies as directed, and can manage multiple trades simultaneously. This automation is a key factor in making RSS manageable, especially for those who cannot monitor the market continuously.