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Attachments: The RSI Trade
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The RSI Trade

  • #781
  • Jan 5, 2010 3:35pm Jan 5, 2010 3:35pm
Quoting andypips
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...
Great post Andy.
Thank you. I will look into your point. I think I will start to have the same number of candles for every post. I think this will help me and anyone who is reading the post.
I am very glad to hear about your new success in trading. And you are right I would have better off not taking the trade. Do be careful of demo trading, it also creats bad habits. I never demo trade. I think demo trading is useful to learn a new platform.
Take care,
Kareem
Trade Garlic
  • #782
  • Jan 5, 2010 8:51pm Jan 5, 2010 8:51pm
hi andypips

thank you,i learn a lot from your post
  • #783
  • Jan 11, 2010 6:12am Jan 11, 2010 6:12am
gbpusd, sold at 6172, sl 6206, tp looking for 6000..

Reason, the value 6172 playing with good sell volume and RSI going to break on 15 minute, also reversed on 4 hour chart... Will update later...
Attached Image (click to enlarge)
Click to Enlarge Name: gbp6172.gif Size: 17 KB
ABCD..
  • #784
  • Jan 11, 2010 6:22am Jan 11, 2010 6:22am
Watching EU for a break, changed back to RSI 21, 14 was to short I felt..
Attached Image (click to enlarge)
Click to Enlarge Name: pic.gif Size: 12 KB
  • #785
  • Jan 11, 2010 7:07am Jan 11, 2010 7:07am
rebel, I think EU can sell now with 4545 stop loss..
ABCD..
  • #786
  • Jan 11, 2010 9:57am Jan 11, 2010 9:57am
It was 53 pips profit, but not taken.. because I am aiming for 6000 level.. and the level 6172 still collecting big sell volume for a big drop hopefully..
ABCD..
  • #787
  • Jan 11, 2010 10:15am Jan 11, 2010 10:15am
Very interesting.

Thanks for posting kareem, I'll have to play around with this a little see how I can incorporate it.

Here's one by the book that I took based on your notes

Attached Image (click to enlarge)
Click to Enlarge Name: 5 min rsi.jpg Size: 114 KB
  • #788
  • Jan 11, 2010 7:46pm Jan 11, 2010 7:46pm
gbpusd going good, so far +95 pips profit, not closed.. moved sl to entry... looking for 6000 level...
ABCD..
  • #789
  • Jan 11, 2010 11:16pm Jan 11, 2010 11:16pm
Hi Rebelheart,
Like your combination of RSI and Stochastic (have you tried trading Stochastic extremes with this setup?)

If you use the stoch extremes with RSI S/R levels, you will have a pretty robust simple system!

If you should add Bollinger Bands using say 2 std devs. then the bands will contain 95% of price movement (which is a pretty strong level for support and resistance )
- sooo when price is at/near a band, and this corresponds to a stoch extreme, which also lines up with an RSI S/R level - YOU HAVE A HIGH PROBABILITY TRADE!!!!!!

Trendlines -
RSI pivots are helpful in drawing trendlines on price - drawing the trendline on the price bar associated with the pivot (just remember RSI is usually based on the closing price)
An other thing about trendlines - they will always be tested and ultimately broken.
So once you have 2 RSI pivots (or price pivots) you can draw a trendline, if the slope of your trendline gives an acceptable $/unit of time, why not just sit back and wait for the trendline break to take your profits?
The higher the timeframe used, the greater the return, and the more relaxed trading experience
Simple low risk trading

All the above is simple S/R trading!!
Enjoy your trading
Peterhttp://cdn.forexfactory.com/images/icons/icon7.gif
  • #790
  • Jan 12, 2010 2:07am Jan 12, 2010 2:07am
still going good..+110 pips now..
Attached Image (click to enlarge)
Click to Enlarge Name: ddddd.gif Size: 18 KB
ABCD..
  • #791
  • Jan 12, 2010 5:46am Jan 12, 2010 5:46am
Quoting jonaslt
Very interesting.

Thanks for posting kareem, I'll have to play around with this a little see how I can incorporate it.

Here's one by the book that I took based on your notes

Attachment
You are welcome and thanks for the post. Nice trade. I am travelling this week and missed some good trades.
Kareem
Trade Garlic
  • #792
  • Jan 12, 2010 5:46am Jan 12, 2010 5:46am
Quoting sreeprakash
gbpusd going good, so far +95 pips profit, not closed.. moved sl to entry... looking for 6000 level...
Very nice Sreeprakash
Trade Garlic
  • #793
  • Jan 12, 2010 5:50am Jan 12, 2010 5:50am
Quoting lizpet
Hi Rebelheart,
Like your combination of RSI and Stochastic (have you tried trading Stochastic extremes with this setup?)

If you use the stoch extremes with RSI S/R levels, you will have a pretty robust simple system!

If you should add Bollinger Bands using say 2 std devs. then the bands will contain 95% of price movement (which is a pretty strong level for support and resistance )
- sooo when price is at/near a band, and this corresponds to a stoch extreme, which also lines up with an RSI S/R level - YOU HAVE A HIGH PROBABILITY TRADE!!!!!!...
Great post as always Peter. Thanks and nice to see you posting again.
Kareem
Trade Garlic
  • #794
  • Jan 12, 2010 6:19am Jan 12, 2010 6:19am
hI Kareem,
Thank you.
Could not resist posting as Rebelhearts layout is very similar to my main setup which is my default layout - tells me everything I need to know -use with multiple timeframes and its pretty hothttp://cdn.forexfactory.com/images/icons/dollar.gif http://cdn.forexfactory.com/images/icons/dollar.gif
Have a good day
Peter
  • #795
  • Jan 12, 2010 6:47am Jan 12, 2010 6:47am
Quoting lizpet
hI Kareem,
Thank you.
Could not resist posting as Rebelhearts layout is very similar to my main setup which is my default layout - tells me everything I need to know -use with multiple timeframes and its pretty hothttp://cdn.forexfactory.com/images/icons/dollar.gif http://cdn.forexfactory.com/images/icons/dollar.gif
Have a good day
Peter
I see it now Peter....makes lots of sense.
Thanks
Attached Image (click to enlarge)
Click to Enlarge Name: 25.gif Size: 17 KB
Trade Garlic
  • #796
  • Jan 12, 2010 12:05pm Jan 12, 2010 12:05pm
Again, one more based on the original rules, 2/2 so far with some discretion along the way.

Exit may be a little premature even though there was a slight violation of the rsi trendline that I usually wouldn't regard as important, but it's a 00 level and throughout the day it was been a resistance multiple times.


Attached Image (click to enlarge)
Click to Enlarge Name: 5 rsi.jpg Size: 113 KB


I think this is a very nice method so far implemented a long with regular PA analysis to filter out some noise.
  • #797
  • Jan 12, 2010 12:55pm Jan 12, 2010 12:55pm
Jonas, it might be my subjective impression, but since I trade ( execute ) at Oa..., don`t you too have the impression that the RSI readings ( and BTW the WMA averages ) are usually more precise than at MT4 brokers ? I noticed this as a breach of the line is signalled usually earlier than at both my regular MT4 broker and my ECN MT4 broker ( which I both use primarily for charting ).

Good trading.
Be like water.
  • #798
  • Jan 12, 2010 1:17pm Jan 12, 2010 1:17pm
Quoting msmarple
Jonas, it might be my subjective impression, but since I trade ( execute ) at Oa..., don`t you too have the impression that the RSI readings ( and BTW the WMA averages ) are usually more precise than at MT4 brokers ? I noticed this as a breach of the line is signalled usually earlier than at both my regular MT4 broker and my ECN MT4 broker ( which I both use primarily for charting ).

Good trading.
Hi msmarple,

That's not something I noticed or paid attention to now that you mention it. If I do use an indicator, which is very rare, I try to run it on the same platform I execute so I get the right signals, or base everything on mt4 since it's usually easier. If that is in fact the case, my first question would be if the same data for the calculations is used (closed and closed prices or if Oanda uses open vs mt4 closed by default). I mean as long as your tests are consistent and profitable, it doesn't matter as long as you stick with one in that case.
This is interesting if you saw a deviation there though, I don't work much with indis so it's not something I've experienced, sorry.
  • #799
  • Jan 12, 2010 1:23pm Jan 12, 2010 1:23pm
yes,you are right.i also use Oa...(after i used MT4 for 6 month)and i think that RSI responds earlier and clear.i also want to thanks all of you for your contribution about the study of RSI.
My humble opinion.
  • #800
  • Jan 12, 2010 3:24pm Jan 12, 2010 3:24pm
Quoting jonaslt
Again, one more based on the original rules, 2/2 so far with some discretion along the way.

Exit may be a little premature even though there was a slight violation of the rsi trendline that I usually wouldn't regard as important, but it's a 00 level and throughout the day it was been a resistance multiple times.


Attachment

I think this is a very nice method so far implemented a long with regular PA analysis to filter out some noise.
Thanks for sharing your trades with us Jonaslt. By the Way I follow the same rule of trading/charts. I use MT4 with IBFX. I did catch one of the same trades you had.
Kareem
Trade Garlic
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