DislikedHow do you use RSI(7) to filter the trade.Ignored
Testing this simple strategy - News trading 23 replies
simple 4hr gbp/usd strategy 38 replies
DislikedTo be clear since I messed up before...
When using RSI as a confirmation for another indicator or system I use a setting of 10 with upper at 55 and lower at 45.
Other than Simple 7 I use RSI for entry and monitoring the trade. If the sell crossses the 55 I close it. If a buy crosses the 45 I close it. I use this on 15m - 1h charts.Ignored
DislikedTom's Simple 7 Strategy
Preparation of charts:
Install a 7 close price EMA.
Install a 50 close price EMA
If the 7 EMA is lower than the 50 EMA trade only the short opportunities for maximum risk/reward.
If the 7EMA is higher than the 50 EMA trade only the long opportunities for maximum risk/reward.
If the closed candles are above the 7 EMA trade long.
If the closed candles are below the 7EMA trade short.
These instructions expect that you have basic trading experience and is not meant to teach you or train you in trading derivatives or forex. www.forexfactory.com and www.babypips.com are excellent websites with basic trading education resources.
With that said, you can use this method on any timframe, but since we are differentiating the positions above and below the 7 EMA that means you will have to monitor your trade constantly after you enter it.
This method was left simple to allow people to use it as I basically set it forth, but also to allow you to adjust it to meet your needs and allow room for your new ideas based on it.
(Intellectual property of Tom, akatom2u) At least give me credits.Ignored