The RSI Trade

Thankyou J.
That was a nice setup to show the use of the lines and got me some nice pips to pay santas bill. I am sure in time that sreeprakash will get the trend line thing. In addition to divergence it really works. The journey through all rsi indis(bolly etc) is not wasted though as it teaches you all you need to know ready for a naked rsi at the end of your search. A bit like dressing up the charts and then stripping them clean again.
How's the Max trading going?

And a Happy New Year to yourself, Kareem and everyone else on here.
Andy

Closed at 6101 for +92 pips...

Kareem,
Thanks for posting this RSI strategy. Have you tested on bigger TF? How about other pairs?

bunton,
thanks for posting this ebook. I love Hayden's illustration.

hi unclek,
I works better on higher time frames ( 4H and 1H are the ones I am using now). And it does work on all time frames, I stay with the EURUSD becasue I like it.
Welcome and thanks for the post,
Kareem

May get a double top soon, then a brake of the rsi trend line would be enough reason for me to take the short..

I missed the long overnight. waiting for the short on the break next.
Kareem

Hi Rebelheart,
Please note I am using the 21 RSI, so my set up might take longer.
Kareem

Volume + RSI
GBPUSD

The Max sell was 6211 for sometime and it changed to 6157 now..
RSI reversed for a long trade and crossed 50..

I entered on 6159 and SL on 6140 because 6140 is the last 15 minute candle low. tp 6210 for now, because the max buy is on 6218.

One thing is sure, this volume thing give me mad or give me some insights about price movement... Still trying to understand about volume trading..

The thing is, experts saying we cant use RSI or fibo alone, we need confirmations.. confirmations from non-correlated indicators... So I am trying many type of things with RSI...

PS: I have got a 66 pips loss a little time ago on another trade..

Update: Price up to 6170 then dropped to 6154 and max sell changed to 6164. Then in the current price level, large buy volume entered and price pushed to 6164. Now sitting on 6170..

I have got 2 opportunities to close the trade with 30 pips profit.. price went 2 times around 6190 area.. but was believing that it hit my tp on 6210 and because of news, price dropped.. now sitting on 6137 area...

Another thing I done before news is, I have updated my sl from 6140 to 6100.. and now running in loss...

closed with -59 pips loss...
Better luck tomorrow...

best of luck tomorrow and thanks for sharing your trades with us.
Kareem

Late in the day, but a break is a break. I am in short.
Kareem

In as well lets hope we see good retrace tomorrow..

now hte price of E/U breaks the dot "1",but i don't think it is a valid break.maybe we can draw line "3",in the price falls down the line "3",i will sell

I got stopped at -50 pips

I like to start my trend lines from the most recent pivot. Must be careful to not to change how you draw the lines. You can always draw a line to justify your trade. It should be the other way around.
Kareem

I stuck with it for a break even..

Hi Yourspace.
Just a quick look at your chart and some comments if they help.
Your line 3(orange on the chart) is drawn under points on the rsi that are not formed by sharp price reversals. The decision as to where to draw them from is hard but can be made easy. Look for a sharp and definite price reversal on the candles - a rejection of price. If this is coupled with a bounce on the rsi from major 30 or 70 levels creating a peak or v on the rsi then better still. Look how the orange line was broken and you expected a sell but the price consolidated and rose instead.
Now look at the rising trend line in green. See how its drawn under two major price reversals and when broken holds firm for a good short. Your orange line is not drawn under a second strong low price action set up.
There was also the small black rsi t/line which was broken upwards for good pips after the green one was drawn.
Although the green one was broken down later in the day notice how it still gave support to the upmove of todays high, then an entry for the short.
I personally use this all the way down to the m1 for taking smaller targets.
I see you post h1 charts , have you tried looking for live setups on m1? It can help the eye spot these quicker for practice. It doesn't mean you have to trade them.
Hope this helps.
Andy

Hi Kareem.
I notice you too took the short. Sorry it didn't turn out for you. I have decided not to trade live this week because work is crazy. I have upped my stake now and doing ok, but I don't want to work all week to give it back. I also don't want to go backwards and trade smaller as I feel this would have a negative effect. Saying that I started with 20 points sunday night and 5 trades for 57 points no losses last night on m1 demo.
Anyway I was going to say that although my comments above to Yourspace relate to your trade as well there is one major thing i noticed which only shows itself now and then and never gets mentioned by anyone.
How squeezed the screen/candles are can make a huge difference on ones perception of a slope/low/high etc. Compare my rsi in my chart to your own and suddenly the slope of the rsi and significance of the lows it was drawn under become relevant. Although the 14 and 21 rsi are different it is marginal. The lows on my orange line are to small and too steep especially when compared to the green line. We had also entered the 60/80 zone and it refused to leave there on the first try.
Maybe the answer would be to ensure there are a minimum number of candles on the chart to ensure enough compression.
It has got me thinking to go back over some of my losing trades and check this out.
Andy