Forex trading strategy #51 (RSI Plus)
Submitted by User on March 10, 2012 - 08:46.
Submitted by Crystal Markets
Today in this article I want to explain the use of RSI and Stochastic together for trend trading, trend confirmation and entry and exit.
- RSI 21 periods
- Stochastic 30,8,18
- Williams %R Default
4hour, 1hour and 15min timeframes should look like these:
The 4hour is the trend - here the RSI must be Below 50level to trade SHORT and Above 50level to trade LONG.
1hour is your confirmation. In a SHORT Trend, 1hr RSI must be below 50 and stochastic must be SELL direction too.
Your entry is with the williams %R getting to extreme counter trend. W%R must be at -20 for SELL and at -80 for BUY. Go for 30-50pips and your stoploss should be well directed it the 1hr RSI change or 1hr Stochastic changes you should exit your have a fixed 50pips Exit on stop.
I have also prepared an EA for this good trading plan. The EA cost $159.99 contact firstname.lastname@example.org if you are interested.