The RSI Trade

Hi czango, we cant use RSI alone for trades...
I am using RSI, trendlines, pivot points combined...

I have also tried CCI before, RSI is better...

Use actionforex.com pivot points (daily) and use with RSI...
http://www.actionforex.com/technical.../pivot-points/

Important thing is, decide the trade direction near pivot points, not in the middle of pivot points....

As for friday pivot points, see some here....

GBP/USD 1.6080 1.6147 1.6212 1.6279 1.6344 1.6411 1.6476
EUR/JPY 127.87 128.45 129.19 129.77 130.51 131.09 131.83

I was with these two pairs on friday, so I am posting pivot points for them.
See how price played between pivot points..

Use RSI and trendlines and find the pivot points price can break/reverse... Use high timeframes like 4 hour to find main trend, then use small timeframes to enter the trade..

If we enter near to pivot points, we only need to use small stop losses...

Where can we download the pivot indi that was used on those images...

Rebel

Hi Rebel,

Dont know about that.. but amazingly my interbank indicators are same...
See this post, below I have given the location of that files...
http://www.forexfactory.com/showpost...&postcount=653

Now the funny thing I seen is on the actionforex site, the daily pivots are almost same like this interbank indicators...

So i am going to use actionforex pivots and check with my own interbank values...

Compare:

Actionforex
Daily 1.6212 1.6279 1.6344 1.6411 1.6476

My indi: 1.6210 1.6278 1.6342 1.6410 1.6474

See the similarity.. just use actionforex i think....

Attached the mafia indicators screenshot

Guys, got another RSI indicator...
Downloaded from another thread here...

Hello, boys - did you miss me ?

As K and Andy know, I am now a MAX trader, but as I only want to take the first entry in a "MAX swing" (don't ask, I made that term up just now...), I have reverted to an improved version of my RSI screen for trading whilst waiting for said MAX entries.

Two charts, 3 trades, 2 units per trade (I prefer 3); chart times are CET. EJ exit had too much giveback, but that's what happens when you write Christmas cards and trade at the same time...
NB. 16 range is using Interactive Brokers data, so each bar is in fact 8 pips.

GU +17 +0
GU +11 +1
EJ +20 +14

Not great, but a little under $700 and done for the morning & probably the day.

Welcome back J.. nice trades today 700 bucks and your not happy, no pleasing some people.. any way you know better than to come on here and not share your template..

Thanks

Rebel..

P.s hope you resume posting here again..

Hi, Reb,

Those charts are Ninja Trader (I execute directly from the chart to Interactive Brokers)... you're welcome if you still want the template ?

PS. If you would like it, 'will post later as I'm off on the school run in 5 mins...

Hello old friend.
Nice to see you back and even nicer to see you trading well. Please feel free to post and share you ideas. Interesting set up I would to hear some more if you have the time.
Kareem

Hi sreeprakash,
Thanks for the new indicators. What is the difference between the two. Please post any information with the indicator if you have it.
Kareem

Good to hear from you, Kareem. 'Hope the work is going well - I know you've been super-busy.

My holiday project is to write up an intraday trading plan based on this chart setup (actually, I have one more modification to make, but I'm waiting for NT7, currently in beta release : many of the present Ninja indis will have to be recoded).

I only started trading this on Friday : 5 trades / 5 winners, so a positive start which nevertheless means nothing unless it can be maintained with a reasonable level of consistency.

I intend to post my trades, good , bad & ugly .

Btw, I am focusing on GU and EJ only at the mo, with a few EU futures trades in TradeStation (as you know, 10 futures trades a month = free platform).

you mean that two i posted?
its metatrader files, one indicator, one source i think..

The rapid rsi giving somewhat strange lines to normal rsi..
But I think its useful... need to check and compare with normal rsi, more...

I found this about rapid rsi, http://forex.gftforex.com/public/item/134925

Having just missed two great London Open shorts this morning, I slightly forced this GU trade... but the entry is not the major problem : I exited at the high of the retracement against me (I had NOT yet drawn the downsloping trendline on price ). So negative EUR 335 this morning & unlikely to have time to trade again today (I'm going to post results in euros, as that's my account denomination... can't work out how to get a euro symbol into FF).

GU 3u -16 -16 -16

I'll mark the initial entries with a vertical line (red short / green long) : the execution arrows can also be seen on the chart).

The correct entry acccording to my new rules would have been to take the reject of the downsloping TL on RSI (encircled), ie. entry at 1.6253 instead of 1.6247. A very critical 6 pips.

I have also noticed that Stops have to be wider lately. And it was a good entry,
Kareem

Jtrade, I hope we hav'nt brought you bad luck start posting on this thread and you have a losing day... hope you can explain more as we go along about your entry signals..

Rebel

Hi J and K.
Glad to see you back Jeremy. I took the trade short for 20 and then 20 long after divergence - see arrows. The difference being I was looking for a break of the lower rsi line compared to your rejection of the upper line.
I am still taking 20 in one go with a 20 stop. Only cable and compounding after every trade. It's finally coming together for me.
Just a note to all the other new faces regarding the different rsi variations, and don't take this the wrong way please. I have over 20 different rsi indis and after wasting all my time I find that the basic mt4 is good enough. It's about understanding the direction and flowing with it. Lizpet has written some good stuff about levels on here, and personally I just have 30,50 and 70 now. But please just study the naked rsi and learn what's coming next, you will arrive at your destination much quicker.
I have attached a chart from today , red for short , green for long. +20 on each with a 20 stop. Am busy with work the rest of the week but will drop by in the evenings.
Andy

Recently I have been thinking that we using RSI for entry, based on reverse/breakout... Now in this thread there no discussion I seen about using RSI for exit/take profit strategy. I think RSI can tell us where to exit or take profit.

The attached is a 1 hour EJ chart..

I have drawn lines based on the criteria that, I did not taken current forming line to consideration. I tried to connect last two points to draw a line.

Its amazing to seen RSI playing between these lines.
The thing is, if we get two points connected and we drawed a line, check pivot levels according to that lines...

Dont know about lower timeframes like 5 minute on this. But I think we can test it...

I love to hear opinions from all of you...
Thanks..

Hi everyone!

Sorry to just burst in here... I was actually on the lookout for a filter for another system that I trade, trying to work out if there is a way to differentiate the 20 pip moves from the 200 pip moves...

Good to see a familiar face here... G'day JTrade!

I have been doing a bit of research, and cannot get past how freaky the RSI can be at times. I have read up to page 25 in the thread, and thus still have a ways to go to come up to speed, however, I have been messing around with a few things that I thought other's may enjoy.

Firstly, I stick to rules regarding trade times... These are for reasons of volatility, which helps in achieving TP's... So, for me, I trade the Asian close/UK open...

I also played around with the Step RSI from back a few pages (a few pages back for me, not you... lol) and have strung the settings out to 14, 10 and 20. Having a setting of 20 sometimes gets the third line off the chart, and sometimes it doesn’t. Unfortunately, when that line goes, so too does the alert function. I would love to have the alert, without the third line...

Anyhows, what I have been looking at is the number of crosses of the 14 and 10 that occur during the peak trade times. I hope I am not sounding too simplistic, but when they cross it is a rare occasion that some pips do not result... Now, bearing in mind that 14 and 10 are not settings that have been optimised in any way by myself, there may be other numbers out there that work even better.

I run off just the cross of the 14 and the 10. During peak times, there are fewer signals, as there is more momentum in the market. Concerning TP's though, I am not sure. Depending on how generous the market is feeling at the time, it can be a great indicator. Generally speaking, you can get 10+ out, from what I can see from visual back-testing.

In alignment with my other trading plan, I would see the cross of 14/10 as a signal candle, and wait for the close. Then I would be looking to enter this high/low +2 pips. I notice that sometimes the signal can occur, then there can be a retracement. Waiting until the PA goes +2 pips in your favour should reduce drawdown and false signals. Ideally, it should be on the next candle, or else it is sometimes a false signal. Additionally, I notice that the hallmark of the candles at the cross of the 14/10 seem to be much smaller than their neighbouring counterparts. I am not up on candlestick patterns, but I would assume that this would mean something to someone. It certainly seems to be a good indication that the PA has found a good pivot.

From what I can see, just trading the cross of the 14/10, in good trade times with heaps of volatility, seems to earn 10 pips plus on most occasions. If I could code up an EA, I would see if there was some long term statistical validity in that statement, but on the basis of visual backtesting, it seems mostly consistent. Certainly, if you had a 1:1 ROR, you would find yourself in front, from what I can see.

Unfortunately, I couldn't code my way out of a wet paper bag... 'Hello World' is about the extent of my coding knowledge.

Maybe with an EA to manage your exits, you could TP1 @ 10 and trail the rest? There is certainly enough volatility behind most RSI crosses to ensure that you DD would be minimal. If what I have said has made some sense to the thread, and may be able to be verified either via EA or visuals, then alls good. I trade six pairs, consistent with my other strategy, mostly due to the effects of correlation. They are: GU, EU, AU, GJ, EJ and AJ. Timing is from around 07H00 GMT, although some setups seem to happen an hour earlier.

Today they were:

GU - 34 pips peak, EU – 26 pips peak, AU – 27 pips peak, GJ – 30 pips peak, EJ – 27 pips peak and AJ – 34 pips, all just from essentially ONE signal in late Asia.

Even if you only took 10 out of each...

Of course, the 14/10 combo doesn't keep you out of all the bad crosses (false entries), but the +2 pips rule certainly helps. Maybe there is something else that can be used as a filter that I have not read in the thread yet...

Other than timing and the 2 pip rule, I also keep away from news (although I notice that the RSI can be quite intuitive at such times - more experimentation will be needed on my behalf before I am convinced) observe pivots, the ADX, and the ATR.

There may be relevance on where the cross occurs along the continuum between 0 and 100 too... Will need to investigate more.

Will keep on keepin on!

PPP

Thank you paidperpip, it was a great post...
The 14/10 you referring to MA's?? I did not used that StepRSI thing...
Please post more of your trade ideas and chart.. It will help us more...


Here is the update for previous trade...
Plz compare...
Entry 130.37 (bad entry actually), stop loss 129.80, TP closed manually on 130.64.

The difference in drawing with previous chart is, the bottom check sign I have moved little for visibility. Then I drawn green line after RSI reversed.. I found two points to connect that green line...

old post: http://www.forexfactory.com/showpost...&postcount=676

New image attached

Guys, attached is, RSI with 200 LWMA..
See MA acting with RSI and see trendlines in main chart...

Should test with 200 LWMA...

'Morning,

Good to hear from you, Andy, and a nice clean chart. I think a lot about the idea of just going for +20 : there's no doubt that on the less trending days it's an excellent way to go. However, I'm trying to morph my shorter term trades into MAX-style trades, complete with scale-ins, to try to build trades on the longer moves. I've gone through periods in the past of just shooting for +8 +20 with a 2 unit entry, during which my average loss was -12 with a high win rate, but if the market then moves another 100 pips, I feel I'm a dumbo (well, I feel that quite a lot when trading anyway ).

Rebel - thanks for your kind words; we'll see how it goes.

sreeprakash - I think earlier in the thread Kareem posted a few charts using the RSI TL break for his exits : I agree it can be a very good tool for both holding the trades that need to be held and exiting early when appropriate.

Hey, PPP, starter of one of my favourite current threads. StepRSI used to be my #1 indicator and that's an interesting parameter set you are experimenting with. But like Andy, I am now using standard RSI. Btw, my fast momentum line (the line on "DSMColor") very closely tracks a 3 period TRIX - on my TradeStation charts I have a 5 & 30min TRIX, plotted as a line and histo respectively (all borrowed from Gleneagles MTF ideas, of which I am a great fan).

As we all know, price-derived indicators are all lagging and I prefer to focus on as few as possible.... (10 minutes pass, as I sit staring at my screen trying to resist the train of thought that wells up from deep within my trading brain.... "Price derived indicators are all lagging, so why I am using them !?").

Oh, dear, please refer back to post #508 on this thread, which started this train of thought, and now look at the chart I just made : a range bar line chart with no indicators ! It looks like RSI - and therefore pleases me - but it is simply price... I am sitting here asking myself "Could I really do this ?" It's a very liberating possibility...

I'd better wait for the men in white coats to come and get me...

(to be continued)

Edit (after 3 hours of fiddling about with charts / reviewing reams of trading notes) : I should really delete the above post, having returned to normality (although the "no indicator line chart method" remains on the back burner), but perhaps I'll leave it to ensure no-one actually follows my suggestions...