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 >>>


 


how can i get that indicator i have etoro but dont se that indicator

Etoro should 100% have an RSI indicator. Just ask the support team there.

Regards,
Edward

Hi Edward,

I am really impressed by the quality of the information available in your site. You are doing a great job keeping this up and also taking the time to respond to the hundreds of questions we newbies post day after day. My congratulation to you for a great job.

I am fairly new to Forex trading and have been doing my research lately only to find out that while thousands of strategies are available to everybody, the two main factors that influence the outcome are Discipline and Money Management, and that is something you cannot download from a website. You stated that clearly on every possible occasion.

Having said all this, now my question: I don't have the freedom to spend much time in front of then monitor; at the most I can spend 1 hour twice a day. What approach (in terms of strategy and time frame) you recommend when having these time restrictions?

Thanks again
Marcelo

Hi Marcelo,

you've approached the trading from the very right point and picked the core components very well.

Considering the time you can dedicate to trading every day, I would recommend focusing on trading strategies that use Pending entry orders, since you'll be able to analyse charts for several minutes, set high probability orders and leave it for the day.
Also, you should pay close attention to placing protective Stops, without it, you can't afford to leave an account for the mercy of the market.

Your trading can be built around 1 hour, 4 hour or a daily time frame. (Since you'll be working with Pending orders, you can easily analyse 1 hour charts, and there is no need to monitor them every hour as long as you also have a Take profit level pre-set).

Hope this will be helpful,

Happy trading!
Edward

Hi Edward, was reading your last reply to Marcelo where you suggested using the 1 hour, 4 hour or daily time frame. My question is for me with a similar 1 hour twice a day schedule for forex, is it ok if i use smaller time frames like 1min, 15min, 30min? Shouldn't i be using shorter time frames since i have less time to play? Furthermore, if i have little capital, trading shorter time frames allows me to place smaller stop losses. What do you think?

I'm also a newbie that started reading up on forex 2 months ago. I also read that you survive on forex and other businesses. That's quite worrying to me which brings me to my 2nd question. Is it possible for a person to fully live just on forex alone earning an average income or more?

Hi Marcelo,

When you plan to start with a small account, and it's going to be your first trading experience, the shorter time frames are preferable, but you have to still remember about proper money management.
1 hour time frame is a popular time frame for many beginner traders, although some prefer to start on even smaller ones, such as 5 min or 15 min.

Regardless your choice, you ultimate focus should be concentrated on the lot size and the number of lots you trade. It is highly advised to start with 0.01 lot (called "micro lot") and place no more than 2-3 trades at one time.

As you continue studying, you'll very soon discover that settling for RSI based trading alone is never a final strategy. There are millions of ways to add/improve and improvise.

All the best in your studying and trading!

Kind regards,
Edward

Hi Edward,

I also find this site (work!) very valuable for newbies like myself!

I believe that most successful traders don't bother or have no time to answer very basic questions.

One or two of my winning orders had suffered closing early automatically notifying 'sorry .....' and something I couldn't even have time to read.

I am aware of the order slippages during volatilities.

Now, is there any other ways (ie. controlling traders) that a broker can make money?

If yes, please explain!

cheers,

Jaybee

Hi Jaybee,

as a trader you should be focused on protecting your trades rather than seeing evil in your broker. A broker, if it's a marker maker, always takes trading positions opposite to yours, but it's done on an automated level.

Making it automated, doesn't however mean that brokers can't artificially steer the market in their own favor, in fact, they can, at least temporarily. Most of the time, if this practice ever takes place, it'll happen during the news hours, or other predicted volatility periods. During those times the market moves fast and covers a lot of distance; at this time it becomes easy to any broker to pitch in with own artificial spikes in price - after all that's a volatile market, nothing is guaranteed.

But that's rather exceptions than a wide spread occurrence. Market makers count money they get from novice inexperienced traders, who simply can't hold on to a winning side for too long. There is no need to manipulate markets and eventually turn the trading community against them.

As you learn, your trading strategy will become your main weapon. Setting stops is not the easiest part of trading, but eventually you'll learn it.
There is also a number of indicators that help with stops and exits.

In the meantime, try to read whatever you can find online, also check out our Money Management and Exit Section for some useful ideas.

Happy learning and trading!
Edward