Forex trading strategy #47 (DOUBLE RSI)
Submitted by User on October 29, 2011 - 12:05.
Submitted by Victor
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.
*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.
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