Forex trading strategy #4 (RSI High-Low)
Submitted by Edward Revy on February 28, 2007 - 14:14.
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.
Entry rules: Buy when RSI has crossed below 30, formed a bottom, and then crossed back up through 30.
Entry rules: Sell when RSI has crossed above 70, formed a peak, and then crossed back down through 70.
Exit rules: not set.
Advantages: RSI is a very good indicator to refer for confirmation for any entry in any simple or complex trading system. For current trading method it advices well on entries, but opportunities occur not that often.
Disadvantages: monitoring is needed, still false signals take place. Strategy is suggested to be used in combination with other ones.
Edward Revy,
http://forex-strategies-revealed.com/
Copyright © Forex Strategies Revealed
rsi 7 and stochastics 5,2,3 works good
can i use Rsi with gold, oil,silver
Please help me, read the above comment and please tell me what to do in that situation
Can you help me,RSI rose above 70 and then fell down, this means we have to sell the product, but at the same time, EMA 10 crossed the EMA 50 upside which indicates a buy signal, so what should be done in this situation?
RSI - Relative Strength Index
What does RSI stand for?
Jim Long
@Plano, TX
This is awesome stuff. Thank you so much for your site and information it's very valuable and appreciated. Keep up the great work.
hy ed what RSI i should use for 1 minute to show me if it's uptrend or downtrend?
And by the way: After RSI is in overbought, after it there is always a smaller high or low just under the overbought or over oversold zone on RSI and the actual price is HIGHER. You are going to have more losing trades unless you take 10-15 pips each time which is pain to sit and wait for all day.
Read more about RSI divergence
To all:
Like Ed said, DO NOT USE RSI ALONE!!! You will most likely lose money if there is a strong trend. Works only in raging market.
Thank you!
Please keep up with this website as I'm learning faster as with any other!
I love your simple explanations with screenshots!
"TP" - Take Profit
Best regards,
Edward
Hi, I'm new to forex and I love this website!
In the first comment for this strategy, the person talks about "TP" ... what is that?
hye Edward..I'm new in Forex and also at this site...Really good work man..
PKN172
The minimum Take profit level should be higher than your Stop loss:
http://forex-strategies-revealed.com/money-management-systems/risk-rewar...
RSI-17? There a hundreds of strategies, while this one is the basic system to start with for novice traders. I trade more sophisticated methods, but I started the same way - with a simple system like this. What's valuable here, is the understanding how the markets & indicators work together. With that knowledge you can move forward.
Regards,
Edward
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