The RSI Trade

I closed...
TP'd 6223.. 67 pips...
Reason: 5 Minute RSI oversold, EurUSD Morning start pattern on 5 minute, MA touch RSI on 4 hour chart.. see attached chart...

The pair will do some correction and go down more I think, but taking profit is good...

Quick 20 pips..
6201-6221

5 minute...

The above said 67 pips trade stop loss was 16 pips, entry 6290, sl 6306.
The beauty of checking 5 minutes gives us small stop loss...

I check 4 hour first, then I try to find it is a top or bottom of a range... The trendlines helps to find it.. and checks RSI, then switch to 5 minute, and check its trendlines and RSI....

If successfully implemented, 5 minute gives us tight stop loss and good target...

Edit: I also check 1 minute.. on 5 minute the trendlines are little slow to form, but in 1 minute the trendlines form fast... If I cant understand the trendlines in 5 minute chart, or there is no trendlines to the desired target area, I check 1 minute...

Trendline helped....

I was thinking to enter the shown price on EJ...
But there was a chart trendline and price touch and reversed there... RSI was breaked actually...

See sign and price...

Now another candle opened and it is coming down to trendline, but I am not entering now..

Attached trendline indicator I am using... Take care..

Thank you sreeprakash. I was about to ask you for it. I will play with it some. I wonder if I can add to the RSI instead of the price chart?
Nice trading.
Kareem

Good idea, did not thought about that...
I just tried bro, but it is not adding....
If you found anyway plz tell us here.....

Thanks...

This one is now freely running.. SL moved to entry.. 129.26..

SL Hit.. See trendlines... 1 minute chart...

Another one, GBPUSD...
4 hour telling us, its a uptrend... But 5 minute broken for downside.. While checking S&R levels, if price stays below 6284-72 area, its a downside movement.. Also fibo 6284, 23.6% broken...

Entry 6291, SL to entry now.. no target... Free Run...

Update for previous trade: closed on entry.. It was actually 30 pips profit, but I was expecting more, and got out on entry.. lol..

New setup: Entry 6336, sl 6350, now moved to entry.. free run..

Watching EJ now...
Nice setup I think...

Hi Sreeprakash,
Did you take the trade?
Kareem

Yes kareem bro, sl 25 pips hit.. The pair down some more pips, then came back...

lesson of this trade, always play with S & R levels...

Yesterday (friday) I played with S & R levels and got some good profits...

1. gbpusd short, it failed to go over 6342 R level, I sold 6336 and closed on 6294.. It was down near to 6278 something, but I was only able to close at 6294... I am talking about the movement hours before the US news.... And I did not given trade on the news time, its risky...

2. eurjpy short, same time I have seen eurjpy failed to get over 131.09 R2 level, given sell on 131.00, closed on 130.75.. it was more down, but my internet connection played big time..

3. eurjpy long, it failed to get down R1 130.53, seeing this, i given buy on 130.59 and closed on 130.84... the pair was actually went to 131.58 if you check the charts... lol...

All these trades are based on RSI. The thing is, do not enter on trades in the middle of S & R points.... Just watch the price movements and prepare our RSI lines to get the trade.. Once the price fails or succeed to accomplish a certain S or R level, give trade with small stop loss... usually 20-25 pips...

Edit: I am using mafia-ibfx indicators for finding S & R levels...
It works perfect in ibfx demo, the owner says use in ibfx demo..
So download ibfx demo mt4 and use this...
http://minibahn.blogspot.com/2009/10...ahn-mafia.html

Here is a site more detailing about RSI setups...
http://www.thepatternsite.com/rsisetup.html

There is a zip file containing word file, download it and read it...

Also the site is a gold mine.. there are several things more to checkout...

hi kareem

In the first example chart you show on this thread , you point out that the breakout happened on the candle that rsi shows to be a breakout point , but really the breakout happened on the previous candle , you have to look at your first chart and see that price broke resistance on one candle BEFORE rsi shows breakout .

at your second chart , price breaks support very connvincingly and immediatly , you dont even need any indicator to see that .

Hello,
Anybody knows
where can I get a free pencil tool to write on MT4?

Thanks

do you think that rsi is any better than usual support and resistance indis?
is it better than CCI?

From my experience i find that rsi is not the fastest and most usefull indicator , at least for entry , i might be somewhat usefull to indicate exit points .

Hi czango,
True many times a simple trend line on the price can just as good and even faster.; But not always. I have also found the RSI to give less "false" break outs. As for other indicator, I agree that the CCI or any other momentum indicator could do the same job. I just happen to love the RSI the most. It was my first "kiss" in trading and I am hooked.
Thanks for the post. Please feel free to post charts for visual examples.
Kareem

Sorry don't know, but I bet google can help.
Kareem