Which strategy involves using statistical measures like RSI to identify trading opportunities?

The strategy that involves using statistical measures like the Relative Strength Index (RSI) to identify trading opportunities is the Countertrend Strategies. These strategies typically aim to capitalize on price reversals or corrections in the market rather than following the prevailing trend. The RSI, as a momentum oscillator, helps traders identify overbought or oversold conditions. When the RSI indicates that an asset is overbought, it may suggest a potential price decline, signaling a selling opportunity. Conversely, an oversold condition might indicate a potential rebounding opportunity, leading to a buying decision.

Focusing on RSI within a countertrend framework allows traders to make informed decisions based on the statistical data provided by the indicator, enhancing their chances of successfully timing their entries or exits in anticipation of a price reversal. This type of analysis is crucial for countertrend strategies, which seek to profit from price corrections away from established trends.