FREE FOREX STRATEGIES

forex trading strategy #29 (RSI & Regression line)


Strategy by Mennzz

Currency: ANY
Time frame: Daily
Indicators: Regression(14), RSI(7)

Details in the photo below.

Only take a buy trade when the RSI(7) crosses the 30 line, and the candlesticks cross the Regression(14) line. and the opposite to sell. The Daily chart works best with this layout, and yes, I did take successful trades with this layout.

Not necessarily does the RSI have to cross the 70 or 30 lines to have a good trade, but for the best trades, you should only wait till the RSI crosses.

To tell you the truth, these currencies [USD-JPY - AUD-USD] work best with this layout, although you can use other currencies, and the RSI line sometimes bounces between the 50 line instead of crossing the 30 or 70, which can lead to losses if traded (Example in pic below).

(I should be coming out with 1 more strategy soon!)

Enjoy.

-Mennzz
Happy Trading!


http://forex-strategies-revealed.com/


Hi,

Thanks for sharing.

Just could not make out what is the regression 14, mind explain in more detail?

Thanks/Snowhyte

Please tell where to find regression indicator for MT4 platform.
Thank you,

Hello,

Here's a tip you can use with this trading system. (How I would trade).

I would put a trade regularly as shown in Image 1, and exit when the RSI touches the 50 line, because it may bounce back up(in a down trend), or bounce back down(in an up trend). But, if it does continue going down past the 50 line, then you can get back in the trade, and continue.

(Example in image below).

Enjoy!

-Mennzz
Happy Trading!

Hi,

May i know what is regression line is it the same with EMA or SMA?

Regards,
Brogery

Hi nice simple strategy, just wondered how you work out entrys SL & TP? also do you wait for a candle to open the other side of the regression? does it have to be exactly where the RSI crosses over?
thanks

Hi,

A Regression line is not an EMA or SMA. A Regression line tells you if the trend is going up or down. You have to wait until the bars cross(Close) the regression line and RSI line crosses the 30 or 70 line at the same time. Then exit when the RSI touches the 50 line. But, if the RSI continues going past the 50 line, then get back into the trade, and continue on.

I don't have a Regression line for MT4 Platform. But, someone on this forum can make or give you this indicator.

Note: I should be coming out with another trading strategy with EMA and something else...(Coming Soon).

Enjoy!

-Mennzz
Happy Trading

Hi Mennzz,
Thank you for sharing this strategy!

I've got one Regression line indicator for MT4, hopefully the right one:

Linear_Regression_line.mq4

At least appears to be matching closely the very first USDJPY chart above.
My MT4 screen shot:

Best regards,
Edward

Hi - looks interesting for sure.

Can you tell me why you only recommend the 2 pairs? Is it that they have proved most profitable in backtesting? Or are they just your preferred pairs?

I think it would be helpful if you could post details of any backtesting you have done!

Might I suggest an initial stop above/below the hi/lo of the bar you enter on and a trailing stop 5-10 pips below the lo/above the hi of the proceeding day - assuming that day makes a new hi/lo?

Be interested to hear your thoughts.

Many thanks,

Rob