Back Burner Trade Strategy

[@ChartGuys]

New FREE E-book on our website www.chartguys.com

[@chrisbravo7997]

RSI settings ? @ChartGuys

[@D_Trade]

Something else I do and would add, is when watching the 5 min RSI, you'll also see a divergence (usually) when placing these trades. So say you enter on an RSI of 25, it drops more, but the RSI is gaining strength to 30, divergence is in place, add a position, and it's yet to fail me

[@ChartGuys]

Good tip, thanks!

[@mightypawns]

Always a classic. Still rewatch this thing from time to time. Thanks Dan!

[@Jens-dj8up]

Thanks Dan, so you wait for a bullish candle forming before entering, maybe on a smaller TF?

[@manchild8304]

Thanks for the reinforcement Dan. What a timely video. Have been learning this technique prior from listening and studying along with all your videos. Today it was applied when I bought NVDA daily exp. 520 calls @.52 at 11:05. I had just observed the just prior oversold condition and a retest of VWAP with RSI rising. It then squooze up to a 1000% gain. You rock. Thank you.

[@ChartGuys]

Thanks Man child and you are welcome

[@troy2923]

Never thought an oversold extension would bring a smile to my face till now! Cheers Dan, I'm running an open double entry repay at 10,140k and 10k on btc. I didn't want to carry the bag up there on a wobbly ladder so I'm lightly (marginally), packed at the moment, got a sell at 10,3 in which I hope there might be another small rejection down to 10,140 other wise a good entry i think at 10,200 if not. Knowing my luck it will rocket past all my entry's and I'll meet it at 10,5. haha ok, that's me, cheers again

[@ChartGuys]

Best of luck!

[@nadiazoo]

Omg this has to have so much more views!!!!!! The most underrated chanel in KZbin 🙏🙏🙏Thank you Dan!!!!

[@ChartGuys]

Thanks! You are welcome

[@lukeschaeffer2551]

Hi, So @11:13, when you say you'd have one filled under 30 and one for the low 20's, does that mean you're actively watching it and entering when it reaches these points; or are you estimating what the price would likely be at 30 and low 20 RSI; or are you using a program that is automated to buy when RSI reaches these levels? Thank you.

[@D_Trade]

I've been following this strategy based upon your analysis long before now and it works great! But as you said, you have to be selective on what you're using it on. Great explanation Dan

[@ChartGuys]

Thanks Dustin, glad it has been working!

[@chrish5750]

Thank you Dan! I have some how perfected buying the top and losing my money. I need help, or to just stop completely.

[@philemonwealthy2011]

He'll help you perfectly

[@morphosis7655]

If you listen to him and trade this way you will be fine. Stop FOMOing, that’s the reason you are buying the top. You need a plan. Plan your trade, trade your plan, no deviation, no FOMO.

[@utubemuzic1]

Hi Dan. Thank you. Question: You said for daily trading you have your RSI OVSLD set for "close," but for this example video you changed it to "low." Just want to know if you change that setting only when you are specifically looking for back burners, but do not change for everyday trading? Many thanks.

[@trentbrady8829]

Legend, thanks mate great trade idea straight in the tool box

[@Jens-dj8up]

@Dan, is there a RSI level +/- where you feel the RSI have cooled off and remove your 2nd order?

[@ChartGuys]

It will not be based on an RSI number, it will be based on the price action... if the candles start the bounce, I am more likely to remove orders.

[@tomstevens6833]

this is awesome Dan! i started watching your channel in the 2017 crypto opportunity. and ive been learning and watching practicaly every vid on this channel (wheather it made sense to me or not). ive gotten use to following my gut and also knowing when to trade another day. but having the oversold bounce trade/back burner trade explained by you is great since i kinda picked up bits of it from just being exposed to the environment of your videos. thanks Dan and The chart Guys! Do Good Things!! enjoy the weekend guys!!

[@ChartGuys]

Awesome Tom glad things are clicking!

[@johnny2351]

Thanks, this and all your videos are very helpful for beginners trader like me

[@ChartGuys]

You got it Johnny, glad it helps!

[@babganz]

How is it going on your trading journey? :)

[@rachelrhodes7427]

Great video and technical advice thanks!

[@markscheckel3253]

Excellent information, great job!

[@ChartGuys]

Thanks Mark!

[@RaptureReady2025]

Hiya thanks for the great videos! Question: RSI can be very different depending on extended hours being switched on & off. Which do you prefer?

[@RaptureReady2025]

After watching your videos daily, I bought a 5 minute oversold bounce on TSLA after it dumped around the middle of the day on 28 August, last day before the stock splits. It was previously at a high 2320 and dumped to 2200. Full credit and respect for sharing this trade idea. This is now in my arsenal of A+ setups. 🙏🙏🙏

[@ChartGuys]

@@RaptureReady2025 Nice! Always extended hours on for me

[@btbd2402]

is there a way to add more funds to a leveraged position without increasing the margin?

[@cryp0g00n4]

You gave me a trading for dummies strategy???! Now it makes sense :P

[@ChartGuys]

One simple concept, but more certainly needed!

[@cryp0g00n4]

@@ChartGuys yes certainly agree correlations, correlations, correlations ;)

[@tejaaraveti488]

Dan, thanks for this video and in the recent past, I have been applying your techniques and they are working perfectly fine... can you please suggest having RSI setting with low of candle price would be more effective or having RSI setting to close of stock price for that candle ?

[@ChartGuys]

I use close because I am watching and acting on it in real time. I only switch to low when looking back at historical examples to see how low it went

[@socksoff5th]

I trade options, so I could essentially flip this strat upside down and be able play both sides right? What i mean by this is ride it on the way down with puts and ride it back up with calls.

[@ChartGuys]

Yes but timing the top is harder than watching for first oversold conditions imo

[@gary5799]

you have to watch using low setting, because it takes the low of green candles messes up the average

[@afrosamurai2423]

Pure alpha 💯

[@tobyblue5143]

Thanks Dan

[@ChartGuys]

You are welcome Toby

[@dragus2904]

Does anyone know what setup Dan looks for when shorting? Overbought RSI and weakness?

[@alasdairnewlands9283]

This is my 5th time watching this!

[@elgerardoedwardio2498]

More gold from the master 😍 This is why we love Dan and the Chart Guys

[@ChartGuys]

Thanks Gerardo!

[@TTT5000]

Simple, effective, and to the point; Perfect!

[@ChartGuys]

Thanks JD!

[@thecrazymort3292]

You say in this video you use the RSI low. Today, under normal circumstances, do you still use RSI low, or do you use the candle close?

[@thecrazymort3292]

Never mind. You answered this later in the video. Thank you.

[@corgilife241]

Great video!! Thanks as always for the insight!

[@ChartGuys]

My pleasure thanks

[@KBAs-eg2lx]

I’m a new trader and wash trading rule is messing up my profits. How do I get around this?

[@ChartGuys]

If you are full time look up Trader Tax Status Otherwise you have to deal with wash rules

[@KBAs-eg2lx]

@@ChartGuys appreciate it! Huge fan of your work and insights.

[@ravdadi1840]

Dan, how important is it that the rsi prints the sub 30 figure? we know in crypto many people front run the oversold bounce? if it doesn't print then going forward other traders will think its not oversold?

[@ChartGuys]

Some will be front run for sure, but if you remain picky that just means you dont take the trade and move on to the next one

[@OfficialKritchular]

You should use stock charts as pictures instead of random ones that sorta go with what ur talking about. A visual example helps better than an audio example

[@theraeman9394]

Thank YOU Dan!

[@ChartGuys]

You got it!

[@1billyjcraw]

It's not clear if the RSI is set at standard 30 or some special one.

[@peanutsandcorn7733]

Thank you! Currently watching CRM waiting for entry.

[@mikeschroeder8356]

Great video, thank you Dan

[@ChartGuys]

You are welcome Mike

[@JColb]

Look at Starbucks today lol... This hit perfectly!!

[@JonBallRealEstate]

the problem is, not finding stocks that have cooled off all the way to the 20 after running hard

[@JonBallRealEstate]

it would have to be the 5min not the 1hr

[@rvogeljr]

Thank you :)

[@ChartGuys]

You are welcome

[@JonBallRealEstate]

Saved to favorites

[@ChartGuys]

Thanks Jon!

[@aznnp77]

I joined this discord chat and all I do is talk about the RSI levels and people keep putting me down about it. Like oh, it's just something to be aware of, but it's not something to make a trade based on. I don't pay them no mind though. Of course you need to take other things into account, but in general, a 30 RSI on the 5 min is likely gonna bounce. A 20 RSI will have an inevitable bounce at some point. Anything under 20 will have a strong bounce. In general terms. Glad I'm not alone on this. But I'm kinda scared that you just let the cat out the bag. I talk about RSI levels in my discord group, but no on Stocktwits. That's a little too public for me.

[@ChartGuys]

A few thousand traders spread out among multiple markets, a dozen sectors, and a thousand tickers will not impact this strategy. If we were all focused on one sector it would

[@cryp0g00n4]

also have to take into account that those who do trade on this idea are on your team so why not let the team grow! :)

[@rustybot4279]

OLA

[@jcbmusicsandiego]

🙏

[@originalprankster3710]

First!

[@gregf0385]

The 5 min RSI alert needs to be added to tradrpro for crypto

[@ChartGuys]

It likely will eventually. The downside of having it is the immense amount of more data required. Think of how many 5 min alerts will fire off on dozens of coins any given day

[@gregf0385]

@@ChartGuys I understand, but think of how many times buying a 5 min RSI oversold has led to further upside in a uptrend. Link/USD has been a ATM when 5 min RSI was oversold for the most part. The price shear alert goes off a lot on alt coins and I can only imagine that the 5 min RSI would be equivalent to something like that. Regardless, I enjoy your content and the Tradrpro app. Thank you for all your videos/help you share.

[@ChartGuys]

@@gregf0385 You got it, appreciate the feedback!

[@chrisa8157]

You're such a frickin smarty pants Daniel

[@ChartGuys]

Why thank you Chris

[@Lucas-vj8rr]

All set ups are useless

[@MrsGondee]

almost sad your releasing this as it means it wont be profitable for too much longer.

[@DylanDValentine]

it will still work.

[@nickvallone65]

Ya seriously. There goes my favorite strategy.

[@jelmerdevries7827]

Then you don't understand why these trading strategies work. More people playing a strategy just makes it more reliable. The specifics for the optimal play may change slightly, but with more people playing the strategy the probability of loosing money goes down.

[@MrsGondee]

@@jelmerdevries7827 So does the amount of money that you can make.

[@jelmerdevries7827]

@@MrsGondee you believe more people buying the 5m oversold will lead to a smaller bounce?

[@tobyblue5143]

Thanks DAN