RSI Trendline Break Strategy | Forex Factory

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RSI Trendline Break Strategy

  • #1
  • First Post: Edited 4:48pm Aug 17, 2023 3:34pm | Edited 4:48pm
Working Concept -Strong starting point for a strategy. Add or remove any component to create a more profitable system.

RSI - Period: 14 - (OB:70 | OS:30)

Draw mini trendlines inside the RSI or if you have TradingView use this indicator: RSI Trendlines with Breakouts

Trendlines should have a minimum of two touches

Trendline break should be the same bar the RSI cross OB/OS level
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Enter a long position if RSI is below the oversold level (30) and closes back above the overbought level (30) AND breaks a trendline

Enter a short position if RSI is above the overbought level (70) and closes back below the overbought level (70) AND breaks a trendline

Exit long position when RSI reaches overbought level

Exit short position when RSI reaches oversold level
or
Exit at 1:1 with recent swing as stop loss
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Can't go broke making profit
  • #2
  • Aug 17, 2023 4:17pm Aug 17, 2023 4:17pm
$$ when you can get more than 2 touches eh?


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Can't go broke making profit
  • #3
  • Aug 17, 2023 4:23pm Aug 17, 2023 4:23pm
Do exit at opposite ob/os level cross? hmm dynamic positioning. Look how 30 level never crosses and saves trade - could work against us in some cases too - interesting to test
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Can't go broke making profit
  • #4
  • Aug 17, 2023 4:28pm Aug 17, 2023 4:28pm
Quoting FireScape
Do exit at opposite ob/os level cross? hmm dynamic positioning. Look how 30 level never crosses and saves trade - could work against us in some cases too - interesting to test {image} {image}
Stops the bleeding early?
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Can't go broke making profit
  • #5
  • Aug 17, 2023 4:36pm Aug 17, 2023 4:36pm
USDCHF recent setup

could always take 1:1 with sing for exit too...your risk apetite
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Can't go broke making profit
  • #6
  • Aug 17, 2023 4:55pm Aug 17, 2023 4:55pm
nice strat
  • #7
  • Aug 17, 2023 6:20pm Aug 17, 2023 6:20pm
Add Divergence for even more power!
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Can't go broke making profit
  • #8
  • Edited 6:43pm Aug 17, 2023 6:30pm | Edited 6:43pm
WIP concepts

Let's aim for Consolidating Markets
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  • #9
  • Aug 17, 2023 6:35pm Aug 17, 2023 6:35pm
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  • #10
  • Aug 17, 2023 6:42pm Aug 17, 2023 6:42pm
WIP Concepts
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Can't go broke making profit
  • #11
  • Aug 17, 2023 8:17pm Aug 17, 2023 8:17pm
Just by coincidence, I have been searching for an RSI system in this forum, but they are sadly lacking, which is mysterious as RSI is popular and useful to say the least. If anyone knows of any, let me know, thanks.

That is to say, I find it useful when combined with the traditional trend indicators and regular old fashioned price action; let me show an example.

First, I would look at the Daily chart, here is how AUDUSD was on Monday's open, price is ranging but has been under the 200 EMA for a while, with a possible support level to the left? The RSI(8) is around the 32 level, so a retracement is required to execute a successful trend trade, IMHO.
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Now this is looking back at the week thus far, on the 4-Hour, again, the RSI is very low around the 32 level, without enough retracement to activate a tradable signal.
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On to the 1-Hour chart, (is this a bit like Elders Triple Screen?), where there was an RSI arrow on Monday about London time by the look of it, same on Tuesday but just missed by a whisker, and again on Thursday, that entry being under attack now! Hey, it's Friday, anything can happen right? Nice price action with the old school lower lows and lower highs, your thoughts? The other line is 50 EMA by the way.
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It takes a lot for me to IGNORE you, but you can try.
  • #12
  • Aug 17, 2023 9:14pm Aug 17, 2023 9:14pm
Quoting Erebus
Just by coincidence, I have been searching for an RSI system in this forum, but they are sadly lacking, which is mysterious as RSI is popular and useful to say the least. If anyone knows of any, let me know, thanks. That is to say, I find it useful when combined with the traditional trend indicators and regular old fashioned price action; let me show an example. First, I would look at the Daily chart, here is how AUDUSD was on Monday's open, price is ranging but has been under the 200 EMA for a while, with a possible support level to the left? The...
Good tool if you know how to use it, try combining with macd
  • #13
  • Aug 17, 2023 10:48pm Aug 17, 2023 10:48pm
Quoting Erebus
Just by coincidence, I have been searching for an RSI system in this forum, but they are sadly lacking, which is mysterious as RSI is popular and useful to say the least. If anyone knows of any, let me know, thanks. That is to say, I find it useful when combined with the traditional trend indicators and regular old fashioned price action; let me show an example. First, I would look at the Daily chart, here is how AUDUSD was on Monday's open, price is ranging but has been under the 200 EMA for a while, with a possible support level to the left? The...
Sorry it's all I can see now
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Can't go broke making profit
  • #14
  • Edited 11:26pm Aug 17, 2023 11:16pm | Edited 11:26pm
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  • #15
  • Aug 18, 2023 7:41pm Aug 18, 2023 7:41pm
Quoting T721
{quote} Good tool if you know how to use it, try combining with macd
I do know how to use, and I don't need another oscillator on my charts, that would be silly, thanks.



WOW, this went from Trading Systems to Commercial?

FireScape, what did you do?

It takes a lot for me to IGNORE you, but you can try.
  • #16
  • Aug 18, 2023 8:09pm Aug 18, 2023 8:09pm
Quoting Erebus
{quote} I do know how to use, and I don't need another oscillator on my charts, that would be silly, thanks. WOW, this went from Trading Systems to Commercial? FireScape, what did you do?
I purposely posted my other indicator (not related) for sale in commerical, didnt know it flags your account and locks you from the other threads haha
Can't go broke making profit
  • #17
  • Last Post: Aug 19, 2023 3:25am Aug 19, 2023 3:25am
Quoting T721
{quote} Good tool if you know how to use it, try combining with macd
How big is this guy's ego?

Do as he says, or he blocks you?

Ha Ha Ha, that's hilarious

Easier to ignore the post and move on, wow.

At least he won't see this.

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It takes a lot for me to IGNORE you, but you can try.
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