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Trading Made Simple the right way, and other trading lessons 334 replies

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Trading Made Simple(r)

  • #11,481
  • Apr 18, 2026 3:31am Apr 18, 2026 3:31am
Quoting RobinHood
{quote} I don't have the time (nor honestly the desire) to actually write a proper guide "per se" regarding using the RSOR, and while it does have many, many nuances, that can be interpreted, I think about it like this (for beginner users): Bruce Lee said: "I fear not the man who has practiced 10,000 kicks once but I fear the man who has practiced one kick 10,000 times" So my "one best kick" using the RSOR is this: (and not surprisingly, it's a Continuation Trade): 1. First, for Long trades, I want the Cyan line (the 34-10-3 Stochastics) in the...
This all sounds like pure gold. I’ll share two screenshots to help confirm the theory, plus one more with the million-dollar question: is there an easy way to limit the entries shown in the third screenshot?

Thanks again!
I really appreciate all your posts in this thread!
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  • #11,482
  • Apr 18, 2026 3:45am Apr 18, 2026 3:45am
Quoting RobinHood
{quote} Thank you pewebly for expressing your gratitude! That post took a long time for me to create...so this post is just for you! (don't share it with anyone else ). On this chart, it's a Daily Apple chart and the Blue RSI line is set to: RSI (4) based on the 10 ema. I often adjust the RSI (4) ---> ema settings to best fit what I saw looking backwards on a chart...because different stocks, Futures, and Forex pairs have different personalities...and therefore they often move differently and so I try to adjust for...
Oops, another good one! Thank you again and again!

So, my previous post was based on what you said:
“2. I want the darker blue line (the RSI, 4 based on the 14 EMA) to have flatlined at 100, then dip any amount below 100, and then go all the way back to flatlining at 100 again (that’s one way I use it to enter).”

I’ve just realized what you meant when you said there are many ways to enter—and even more ways to exit.
  • #11,483
  • Apr 18, 2026 5:12am Apr 18, 2026 5:12am
Iran closes the straight again, it was another trump weekend manipulation as always
  • #11,484
  • Apr 18, 2026 11:45am Apr 18, 2026 11:45am
If there is no news that the strait is open or there is some escalation (resumption) of hostilities, it could be gap down galore in the markets.
Oil is poised for an upmove on this chat
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If you think you can or cannot do it you are correct
  • #11,485
  • Apr 22, 2026 1:32pm Apr 22, 2026 1:32pm
Hello RobbinHood.
First of all i wanna say thank you, you really changed my life with your ideas and because of you right now i am profitable trader !!!

I have a question about the RSOR.
I really can't spot something better than the smTMMS v7.4

-the Cyan Stochastic is already on main chart as 34 EMA trend

-the 8 3 3 Stochastic only good for divergence

-the 14 4 RSI i don't see the point for entry because already i can see the pullback on the trend then continuation , You could use 6 and 13 Ema for continuations ( 6 and 13 EMAS acting and looking on chart almost same as 14 4 RSI)
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  • #11,486
  • Apr 22, 2026 5:54pm Apr 22, 2026 5:54pm
Quoting unsolutionn
Hello RobbinHood. First of all i wanna say thank you, you really changed my life with your ideas and because of you right now i am profitable trader !!! I have a question about the RSOR. I really can't spot something better than the smTMMS v7.4 -the Cyan Stochastic is already on main chart as 34 EMA trend -the 8 3 3 Stochastic only good for divergence -the 14 4 RSI i don't see the point for entry because already i can see the pullback on the trend then continuation , You could use 6 and 13 Ema for continuations ( 6 and 13 EMAS acting and looking...
Thank you for the kind words you wrote about me. I am glad to hear you are now a profitable trader!

I have a question about the RSOR.
I really can't spot something better than the smTMMS v7.4

Fair enough...You have to use what suits you best.

-the Cyan Stochastic is already on main chart as 34 EMA trend

Not by the way that I define what is: "on the main chart". For me, the MAIN chart is the chart that shows the candlesticks on it, which in your chart images, they both contain the 34 Exponential Moving Average, not the 34 Stochastic. So the 34 Stochastic is only in the UPPER WINDOW on your screenshots, whereas I always use it in the lower window - not that it matters at all where you place it on a chart.

-the 8 3 3 Stochastic only good for divergence

That is so NOT true, but it may for you because that's the ONLY way that you use it...or know how to use it. For example, I use it for crossover entries AND very often to tell me when to exit certain trades - as I just recently described in Post #11,471.

-the 14 4 RSI i don't see the point for entry because already i can see the pullback on the trend then continuation , You could use 6 and 13 Ema for continuations ( 6 and 13 EMAS acting and looking on chart almost same as 14 4 RSI)

As I already said: "Fair enough...You have to use what suits you best". Personally, I almost always use the 3 and 8 ema's for continuations along with the 21 and 34 ema's to show me the "bigger" trend.

You said that you have a question about the RSOR, I don't see it, so specifically...what's your question? - or did I already unknowingly answer it?
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Always a Student, Never a Master - Emulate What Works
  • #11,487
  • Apr 23, 2026 12:23am Apr 23, 2026 12:23am
Quoting unsolutionn
Hello RobbinHood. First of all i wanna say thank you, you really changed my life with your ideas and because of you right now i am profitable trader !!! I have a question about the RSOR. I really can't spot something better than the smTMMS v7.4 -the Cyan Stochastic is already on main chart as 34 EMA trend -the 8 3 3 Stochastic only good for divergence -the 14 4 RSI i don't see the point for entry because already i can see the pullback on the trend then continuation , You could use 6 and 13 Ema for continuations ( 6 and 13 EMAS acting and looking...
Hi, unsolutionn.

Any chance that you share TradingView Tmms indicator with us?
  • #11,488
  • Apr 23, 2026 2:58am Apr 23, 2026 2:58am
This works, and when something works, it just works
The question with no clear answer yet is when to exit. Yeah, this comes with experience, as RH says, and there’s nothing to do to expedite it.

The RSI is too late in this case. smTMMS turning green, together with the HMA color change, is fine—but only for this specific setup.

I guess price action knowledge works better for exits than indicators, since indicators are lagging by definition, right?

RH, do you know any simple price action patterns for better exits?
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  • #11,489
  • Apr 23, 2026 2:15pm Apr 23, 2026 2:15pm
Quoting RobinHood
{quote} I don't have the time (nor honestly the desire) to actually write a proper guide "per se" regarding using the RSOR, and while it does have many, many nuances, that can be interpreted, I think about it like this (for beginner users): Bruce Lee said: "I fear not the man who has practiced 10,000 kicks once but I fear the man who has practiced one kick 10,000 times" So my "one best kick" using the RSOR is this: (and not surprisingly, it's a Continuation Trade): 1. First, for Long trades, I want the Cyan line (the 34-10-3 Stochastics) in the...
Thank you, RH. I spent two weeks reading all the comments on your post—I often read and tested until 2 a.m. before going to sleep. I also backtested Pattern #1 and achieved good results using your three-position money management approach in 2019. However, Pattern #1 still had some limitations in my testing, so I continued studying your improvements over the past seven years up to the current RSOR. I’m very excited to start testing it tomorrow.
Thank you very much for sharing your knowledge with everyone. My English is not very good, so I had to use AI for translation—please excuse any mistakes.
  • #11,490
  • Apr 23, 2026 3:56pm Apr 23, 2026 3:56pm
Quoting pewebly
This works, and when something works, it just works The question with no clear answer yet is when to exit. Yeah, this comes with experience, as RH says, and there’s nothing to do to expedite it. The RSI is too late in this case. smTMMS turning green, together with the HMA color change, is fine—but only for this specific setup. I guess price action knowledge works better for exits than indicators, since indicators are lagging by definition, right? RH, do you know any simple price action patterns for better exits? {image}
I guess price action knowledge works better for exits than indicators,

I don't think one is overall better than the other IF you have enough trading experience, but I do think that understanding and using both is what is the most optimal.

since indicators are lagging by definition, right?

No, not always. For example the standard momentum indicator often leads price...and many divergences do too.
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RH, do you know any simple price action patterns for better exits?

There are simple price action patterns that can work really well, such as: Breakouts of: Symmetrical and Asymmetrical triangles, Ascending and Descending triangles, Bull flags, Bear flags, Wedges, Head & Shoulders. Those are the ones that I most often consider using.

Aside from all of the above. Here are some ways that a trader could use to exit using ONLY indicators. At EVERY red arrow on the chart below, you could use that one spot (if you understand what each red arrow is telling you) to exit the Short trade. This is not my "usual trading template" but it is just something that I was watching and playing around with for most of today.
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Always a Student, Never a Master - Emulate What Works
  • #11,491
  • Edited 6:41pm Apr 23, 2026 4:37pm | Edited 6:41pm
Quoting zetstlx
{quote} Thank you, RH. I spent two weeks reading all the comments on your post—I often read and tested until 2 a.m. before going to sleep. I also backtested Pattern #1 and achieved good results using your three-position money management approach in 2019. However, Pattern #1 still had some limitations in my testing, so I continued studying your improvements over the past seven years up to the current RSOR. I’m very excited to start testing it tomorrow. Thank you very much for sharing your knowledge with everyone. My English is not very good, so I...
Thank you for joining Forex Factory, and for your first post being in this thread.

I am going to say something that I don't think I that have ever said before in this thread.

I VERY intentionally almost never update Page 1, Post #1 with new ideas that I post because "learning" trading is a JOURNEY that should never end for any trader...unless they quit trading.

Meaning, I want traders who read this thread to "evolve" into being better traders by reading the whole thread as it has "evolved" over time. Personally, to me if you want to read a novel, then they should read the "whole" novel, not just the first and last chapters.

Also, I would suggest this to you. Put the RSOR on every chart you ever use, and study it constantly and learn what it is telling you, because even though I created it, I still learn new things about it quite often...and I have studied the RSO and now the RSOR combined for thousands of hours.

So as a "Welcome Present" to the thread and because you want to study the RSOR, here's a secret that ONLY I know about it and that I only learned by really, really studying it, and I will now share it with only you.
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Always a Student, Never a Master - Emulate What Works
  • #11,492
  • Apr 24, 2026 1:10am Apr 24, 2026 1:10am
Quoting RobinHood
{quote} I guess price action knowledge works better for exits than indicators, I don't think one is overall better than the other IF you have enough trading experience, but I do think that understanding and using both is what is the most optimal. since indicators are lagging by definition, right? No, not always. For example the standard momentum indicator often leads price...and many divergences do too. {image} RH, do you know any simple price action patterns for better exits? There are simple price action patterns that can work really well, such...
I don’t have words to express my gratitude for your invaluable help. I will dedicate as much time as I need to study this post in detail, understand it fully, and apply it. This is probably the most important post, because exiting a trade is more important than entering one... and you, as well as many others, have said that the most important skill is to limit losses, and that knowing when to exit is crucial.
  • #11,493
  • Apr 24, 2026 4:15am Apr 24, 2026 4:15am
Quoting RobinHood
{quote} Thank you for joining Forex Factory, and for your first post being in this thread. I am going to say something that I don't think I that have ever said before in this thread. I VERY intentionally almost never update Page 1, Post #1 with new ideas that I post because "learning" trading is a JOURNEY that should never end for any trader...unless they quit trading. Meaning, I want traders who read this thread to "evolve" into being better traders by reading the whole thread as it has "evolved" over time. Personally, to me if you want to read...
Hi RH, thank you. I’ve backtested a number of trades using RSOR, and overall the indicator is quite easy to use. However, I believe each trader should combine it with a method they already understand well to improve their win rate.
At the moment, I don’t yet have a sufficient sample size to make any solid conclusions about my strategy when combined with RSOR. I’ve also tested some warning scenarios that suggest when not to enter trades or when a trade may go against the trend. This is one of them. Please take a look at how price moved in image 2 after the indicators gave warnings in image 1.
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  • #11,494
  • Apr 24, 2026 1:52pm Apr 24, 2026 1:52pm
Quoting zetstlx
{quote} Hi RH, thank you. I’ve backtested a number of trades using RSOR, and overall the indicator is quite easy to use. However, I believe each trader should combine it with a method they already understand well to improve their win rate. At the moment, I don’t yet have a sufficient sample size to make any solid conclusions about my strategy when combined with RSOR. I’ve also tested some warning scenarios that suggest when not to enter trades or when a trade may go against the trend. This is one of them. Please...
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Always a Student, Never a Master - Emulate What Works
  • #11,495
  • Apr 24, 2026 4:37pm Apr 24, 2026 4:37pm
Quoting zetstlx
{quote} Hi RH, thank you. I’ve backtested a number of trades using RSOR, and overall the indicator is quite easy to use. However, I believe each trader should combine it with a method they already understand well to improve their win rate. At the moment, I don’t yet have a sufficient sample size to make any solid conclusions about my strategy when combined with RSOR. I’ve also tested some warning scenarios that suggest when not to enter trades or when a trade may go against the trend. This is one of them. Please take a look at how price moved in...
combined with price action at support & resistance, RSO has been the best single indicator i have ever used. very often i enter when price reaches certain key zone and the short stoch is signaling a divergence.
  • #11,496
  • Apr 24, 2026 4:37pm Apr 24, 2026 4:37pm
Quoting RobinHood
{quote} Thank you for joining Forex Factory, and for your first post being in this thread.
thank you for sharing this!!!
  • #11,497
  • Apr 26, 2026 8:14am Apr 26, 2026 8:14am
Quoting StonebankS1
{quote} combined with price action at support & resistance, RSO has been the best single indicator i have ever used. very often i enter when price reaches certain key zone and the short stoch is signaling a divergence.
Hi StonebankS1 and thank you for your contribution.
Can you please share screenshots of some of your good and bad entries?
This could help a lot
Thank you!
  • #11,498
  • May 3, 2026 12:36am May 3, 2026 12:36am
I am trying this system on BTCUSD, I have already tested on EURUSD for about 1 week using a demo account and it worked perfectly except when there is a consolidation period. I used 1hr TF to enter the trade while monitoring the trend on 4hr and daily. I am still struggling on consolidation period. I have also back tested it on EURUSD from Jan 26 - March 26, it worked very well on trending periods. Issue is when it consolidates.

Here is BTCUSD 1hr chart. I have entered on 3rd candle.
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Here is BTCUSD 4hr chart. It seems there is going to be a small pull back before it goes higher.
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  • #11,499
  • May 3, 2026 11:11am May 3, 2026 11:11am
Quoting Mr-X
I am trying this system on BTCUSD, I have already tested on EURUSD for about 1 week using a demo account and it worked perfectly except when there is a consolidation period. I used 1hr TF to enter the trade while monitoring the trend on 4hr and daily. I am still struggling on consolidation period. I have also back tested it on EURUSD from Jan 26 - March 26, it worked very well on trending periods. Issue is when it consolidates. Here is BTCUSD 1hr chart. I have entered on 3rd candle.{image} Here is BTCUSD 4hr chart. It seems there is going to be...
Hi, and thank you for your post.

No trend following system is going to do very well during non-trending/consolidating market phases.

CNBC used to do a "1 Million Dollar Portfolio Challenge" trading contest.

I spent an inordinate amount of time collecting and studying the writings and charts of one of the past winners (because I like his trading style as it also fitted mine).

His #1 rule was to: Only trade in a very strong trend, and only in the direction of the trend

I think about what he said before almost every trade that I enter.

He also said: This is the real 'secret' to gauging trend strength: the strongest trends exist when the short and intermediate term EMAs are very diverged from the long term EMA. Be patient. Focus ONLY on the strongest trends and set up your trades accordingly.

I don't follow the rule 100% of the time on every trade I make...because I know of a lot of nuances that can help me identify when to enter a during a non-strong trends...and when not to. Things such as: The time of day, divergences, the day of the week, the moving averages converging or diverging, important sheduled upcoming news announcements, when Trump or the Fed chairman is scheduled to speak, etc., etc., etc.

Now "how' you go about determining what is or is not in a strong trend can be determined in many, many ways. I now happen to make that determination by reading what the EMA's and the "RSOR" indicator are telling me both at the same time.

I also try to determine that by looking at 1 or 2 time frames higher to see if either (or both) of them is in a strong trend.

Here's my "current" best way to knowingly avoid entering trades during choppy/sideways/consolidation periods. I call these: RSOR Continuation Trades.
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Always a Student, Never a Master - Emulate What Works
  • #11,500
  • Edited 10:06am May 4, 2026 9:43am | Edited 10:06am
Hi @RobinHood,

First of all, thank you for all your great advice!

May I ask for your feedback on this setup:

  1. Would you enter this trade?
  2. When would you exit, according to post 11490 (and your experience)?

Thank you!

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