FREE FOREX STRATEGIES
Forex brokers comparison

Forex trading strategy #4 (RSI High-Low)

Although no trading system can solely rely on RSI indicator, using it in combination with other tools and proper technical analysis can bring a new edge to your Forex trading.

Setup:
Currency pair: Any.
Time frame: Any.
Indicator: RSI (14) with levels at 70 and 30.


Read entire post >>>


 


What RSI signals do you use? Cross of the 50 level? Exit from oversold/overbough zone etc?
Is it possible to attach a scree shot, so that we can discuss it? Thank you.

Regards,
Edward

thanx edward

Edward, I want to congratulate you for starting this great website.
I have a question.....Carlos Alberto says in one of the comments that he uses "fractal" moving averages.
I am not sure what he means.
Can you explain what it is, how to set it up, and how to use it.?
I know it is a lot to ask.
Thanks.

Nel.

Hi Nel,

Carlos wrote:
"...and I added 2 indicators: An Exponential Moving Average 200, close and fractals."

He meant that he added 200 EMA indicator applied to Close and Fractals indicator.
Fractals is a separate indicator. It looks this way:

fractals

You can download one for your Metatrader4 platform here: wlxFractals.mq4

Regards,
Edward

"just try this with RSI(7) but with GBP/USD and use 5 min chart set +10 TP and you simple will make 100 pip per day wow .:P"

Sounds great! :-) Two questions: What does "7" mean? How do I set for "7"? What is the "+10 TP" setting about?

Thank you,

Nils

"Hi,
You may try combining RSI with Stochastic (5, 3, 3). Entry should be initiated on Stochastic lines cross and only if RSI has returned from overbought/oversold area. Not all Stochastic crosses are valid for entry though. Use only those that occur below 30 and above 70."

Hi, I have another question about a comment, how come 30 and 70 are used to confirm Stochastic crosses? Instead of 80 and 20? Does this have something to do with the RSI "cross values", which are 70 and 30?

Thank you again! Nils

Hello,

"RSI (14, 70, 30) stands for RSI 14 and two levels/horizontal lines at 70 and 30.
14 is a standard period for this indicator."

Why do you set levels/horizontal lines the way you do? e.g. at RSI 7,3,3? Does the 7 mean 7 periods? What do the 3,3 mean? What do the two 3s do for you in trading? What are they?

Thank you,

Nils

Hi Edward,

I have a question about the comment from Senor Catillo Sanchez - "EMA 200, close and fractals" - what does the ", close" refer to? What are fractals? How are they used?

Does prices up/down EMA mean that the EMA lines are moving upwards/downwards? As described at the beginning of the simple strategies section?

Thank you,

Nils