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Forex trading strategy #47 (DOUBLE RSI)

Submitted by Victor

victor.fxwave@gmail.com
http://crystal-markets.blogspot.com/

I was asked to filter this trading plan:

The system is almost 100% accurate with backtesting, but trading life
is kindoff different.

Time Frame: 1hour
CURRENCY PAIR: Eur/Usd Gbp/Usd any other
Indicators: RSI with Period (2) placed on RSI with Period (12)
To setup rsi simply place the rsi(12) on your chart normally then drag
the rsi again and place it on top of the rsi(12) and enter the setting
of two.This works in MT4 platforms.

RULES:
*Enter Buy When Rsi(2) cross Rsi(12) from below and heading upward
*Enter Sell when Rsi(2) cross Rsi(12) From above and heading downward.

Take Profit: 20 pips
Stop loss: 30pips or Swing High /Low
But sometimes you catch up with really big trends.(when i suspect a
big movement i use a trailing stop with a high tp)

This system has so many potentials because it can be used on 5mins,
10mins,15mins,1hour,4hours and daily chat with eur/usd and Gbp/usd.
Hence i need experts like you to look into it and make recomendations,
with refrence to how i can filter the fakeouts.

Sometimes the rsi cross would occur but before the candle formation
finishes the cross would dissapaer.

MY RECOMMENDATIONS:
Because you will see a lot of whipsaw and when the short RSI closes across the long RSI you would have missed a lot of good moves.

You need to add default fisher. If you are trading the 60min for example: When fisher is green (BUY) wait for 2 RSI to go below the 12 and the fisher still BUY in 1hr and 4hr then look for BUY entry. I trade one BUY per one set of 1hr green fisher. The chart below shows example of 2 BUYs and 1 SELL. Please leave a comment here if you have questions:

Details of pictures here: http://crystal-markets.blogspot.com/2011/09/double-rsi.html

Since we are talking MT4 here, I find better results using RSI 6 on both RSIs. Make the first RSI work off the Close Price. Make the second RSI work off the first RSI.

When you get a Buy signal, close the open sells. When you get a Sell signal, close the open Buys. Or use Stops and Limits for closes.

Thanks for your post. I am a new trader . Pardon my ignorance ,Could you please tell me what is fisher.

Regards,
Ven

For those of you who might have problem with Fisher indicator, default stochasticHistogram of 5,3,3 or 8,3,3 could replace it for same performance

Crystal Markets
http://crystal-markets.blogspot.com/

I'm trying RSI 12 Median Price, RSI 6 Median Price, Fisher 12, 15m chart. They all line up a bit better on the swing of the trend, as far as I can see at this early stage, will throw a few trades on the demo account. I just chucked a smoothed Heiken Ashi on the chart, more confirmation of the change in direction, looks good but so do so many, proof is in the pudding.

Might also want to add a "silent zone" to the Fisher indicator of around 0.45 & -0.45(levels)to filter out the flat trends when all other signals are telling you to enter.

Hi!

Can someone paste this strategy, seems to be good, I was try to paste here, but unsuccess

Fisher is a Technical Indicator you can download from earnforex.com

Crystal Markets
http://crystal-markets.blogspot.com/

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