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Attachments: Simple RSI & MACD Trading
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Simple RSI & MACD Trading

  • #1
  • First Post: Jun 27, 2010 3:42am Jun 27, 2010 3:42am
Ok, this is NOT my original idea. I just pick up the pieces and put together.

I DO NOT KNOW IF THIS WILL BE A WINNING STRATEGY INTO THE FUTURE OR NOT! I JUST NOTICED FOR THE PAST ONE YEAR THAT IT HAS GENERATED POSITIVE RESULTS FOR ME!

Here's how:

Currency: EUR/USD, GBP/USD, EUR/JPY, GBP/JPY

Time frame: 1 HOUR

Indicators: RSI (7), MACD DOT (5,200,3)

BUY SİGNAL: After RSI (7) touched 25 level from below, wait for the first Blue MACD dot appears, then buy.

Exit for BUY:

1. When RSI touch 75 level from below; or
2. Using Fib level or
3. Using Daily Pivot of Support & Resistant or
4. Jumping Stop Loss or
5. Trailing Stop Loss or any other way(s) that suits you

SELL SİGNAL: After RSI (7) touched 75 level from above, wait for the first Red MACD dot appears, then sell.

Exit for SELL:

1. When RSI touch 25 from above or
2. Using Fib level or
3. Using Daily Pivot of Support & Resistant or
4. Jumping Stop Loss or
5. Trailing Stop Loss or any other way(s) that suits you

Trade 24 hours. Please use the link below for the screenshot:

http://my.jetscreenshot.com/3623/20100623-kmpn-268kb

Note: Please start from your left and follow the comments to get an idea. You will see three (3) Short Entries hit SL in my examples. However, with the feature of either Trailing SL or Jumping SL, those losing trades will be avoided.

Money Management:

I use hard Stop Loss of 50 pips. You adjust for your own risk level.

Note: You may want to use the direction of SMA 200 on H1 or Daily chart or any other way(s) to filter out losing trades. I use none. Constructive suggestions are welcome.

That's it! Nothing else!

Victor
Attached File(s)
File Type: mq4 MACD_Dot.mq4   3 KB | 2,475 downloads
福 子 Victor V
  • #2
  • Jun 27, 2010 8:06am Jun 27, 2010 8:06am
Hi Camvcvoo,

Seems simple enough. Do you wait any length of time after the dot appears?
Thanks.

pipsacker
  • #3
  • Jun 27, 2010 8:30am Jun 27, 2010 8:30am
Quoting pipsacker
Hi Camvcvoo,

Seems simple enough. Do you wait any length of time after the dot appears?
Thanks.

pipsacker
Here's the trick:

On any H1 bar when the dot appears, i put in an instant order with my SL. Most of the time, when the price action of that particular H1 bar moves up and down, the dot may disappears and appears again. When the current H1 bar is closed, no more repainting.
福 子 Victor V
  • #4
  • Jun 27, 2010 8:57am Jun 27, 2010 8:57am
Thanks, Camvcvoo.

pipsacker
  • #5
  • Jun 27, 2010 10:50pm Jun 27, 2010 10:50pm
http://my.jetscreenshot.com/3623/20100628-lspo-140kb

Trade on jumping stop loss of 30 pips. Let's see what happens.
福 子 Victor V
  • #6
  • Jun 28, 2010 9:08am Jun 28, 2010 9:08am
Quoting camvcvoo
http://my.jetscreenshot.com/3623/20100628-lspo-140kb

Trade on jumping stop loss of 30 pips. Let's see what happens.
Hit SL. Will wait for next setup.
福 子 Victor V
  • #7
  • Jun 28, 2010 6:12pm Jun 28, 2010 6:12pm
May be late but.....

http://my.jetscreenshot.com/3623/20100628-rdln-144kb

Will let the trade play out by itself. Target TP @ 1.5000
福 子 Victor V
  • #8
  • Jun 28, 2010 6:19pm Jun 28, 2010 6:19pm
This will not work simply because overbought and oversold on RSI or any indicator is a myth. Prices can stay overbought for extremely long periods of time and the same for oversold. You will enter too many false signals and your SL is too arbitrary.

You are on the right track using RSI and looking at momentum but there is much more to RSI then using it in this way. You will need to learn about RSI reversals which by the way are not the same as divergences on RSI.
  • #9
  • Jun 28, 2010 6:38pm Jun 28, 2010 6:38pm
Quoting pdean123
This will not work simply because overbought and oversold on RSI or any indicator is a myth. Prices can stay overbought for extremely long periods of time and the same for oversold. You will enter too many false signals and your SL is too arbitrary.

You are on the right track using RSI and looking at momentum but there is much more to RSI then using it in this way. You will need to learn about RSI reversals which by the way are not the same as divergences on RSI.

I do not enter on RSI overbought/oversold. I use divergence in RSI to tell me i am ready to look for an entry. My confirmation is on the MACD Dot.

Anyway, thanks for pointing out.

Remember, no one is wrong or right. It is just a matter of choice of personal preference.
福 子 Victor V
  • #10
  • Jun 29, 2010 2:51am Jun 29, 2010 2:51am
Quoting camvcvoo
May be late but.....

http://my.jetscreenshot.com/3623/20100628-rdln-144kb

Will let the trade play out by itself. Target TP @ 1.5000
Adjusted SL to Daily Pivot @ 1.5079. Now wait for target to be hit!

福 子 Victor V
  • #11
  • Jun 29, 2010 3:18am Jun 29, 2010 3:18am
Quoting camvcvoo
Adjusted SL to Daily Pivot @ 1.5079. Now wait for target to be hit!

Closed at 1.5030 since RSI reached below 25.

+63 pips

Nett: +13 pips

Waiting for next setup.

福 子 Victor V
  • #12
  • Jun 29, 2010 6:46am Jun 29, 2010 6:46am
Quoting camvcvoo
I do not enter on RSI overbought/oversold. I use divergence in RSI to tell me i am ready to look for an entry. My confirmation is on the MACD Dot.

Anyway, thanks for pointing out.

Remember, no one is wrong or right. It is just a matter of choice of personal preference.
Regardless of how you phrase it, overbought (75) or oversold (25) you will be tricked into many trades even if you use the MACD and sometimes because one false trade will confirm another. With one indicator you have a 50% chance of being right, with two it drops to 25%. Divergences are statistically difficult to trade as there are an overwhelming number of them that are false because they occur typically in opposition to the direction of market prices. RSI reversals which are different from divergences are more predictable. Not trying to be right or wrong, just helping you see that your system will probably produce many false signals, way more than true ones.
  • #13
  • Jun 29, 2010 6:47am Jun 29, 2010 6:47am
Second setup for the day:

http://my.jetscreenshot.com/3623/20100629-ssuv-146kb

TP @ 1.5140

Let's see......

福 子 Victor V
  • #14
  • Jun 29, 2010 6:50am Jun 29, 2010 6:50am
macd has to be my favourate indy
  • #15
  • Jun 29, 2010 6:50am Jun 29, 2010 6:50am
Quoting pdean123
Regardless of how you phrase it, overbought (75) or oversold (25) you...
Thank you very very much. Where do you think i can get more out of RSI Reversals? Do you have files for me to read on?

福 子 Victor V
  • #16
  • Jun 29, 2010 9:47am Jun 29, 2010 9:47am
following this thread...new fresh idea... keep posting!!!
  • #17
  • Jun 29, 2010 9:54am Jun 29, 2010 9:54am
short gu @5044
Attached Image (click to enlarge)
Click to Enlarge Name: first dot.gif Size: 22 KB
  • #18
  • Jun 29, 2010 10:05am Jun 29, 2010 10:05am
took 30 pip loss will test next signal...
  • #19
  • Jun 29, 2010 10:51am Jun 29, 2010 10:51am
after loss took the next signal long and found the winner
Attached Image (click to enlarge)
Click to Enlarge Name: long dot.gif Size: 20 KB
  • #20
  • Jun 29, 2010 11:08am Jun 29, 2010 11:08am
Why dont you give us your treding metod and help us new guys.
sasa

Quoting pdean123
Regardless of how you phrase it, overbought (75) or oversold (25) you will be tricked into many trades even if you use the MACD and sometimes because one false trade will confirm another. With one indicator you have a 50% chance of being right, with two it drops to 25%. Divergences are statistically difficult to trade as there are an overwhelming number of them that are false because they occur typically in opposition to the direction of market prices. RSI reversals which are different from divergences are more predictable. Not trying to be right...
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