RSI High Low Strategy ~ forex trading examples

6:45 AM in 100, 28, Forex, high, low, ma, rsi, strategy, trading

Although no trading system can solely rely on RSI indicator, using it in combination with other tools and proper technical analysis can bring a new edge to your Forex trading.

Setup:Currency pair: Any.
Time frame: Any.
Indicator: RSI (14) with levels at 70 and 30.

Entry rules: Buy when RSI has crossed below 30, formed a bottom, and then crossed back up through 30.
Entry rules: Sell when RSI has crossed above 70, formed a peak, and then crossed back down through 70.

Exit rules: not set.

Advantages: RSI is a very good indicator to refer for confirmation for any entry in any simple or complex trading system. For current trading method it advices well on entries, but opportunities occur not that often.

Disadvantages: monitoring is needed, still false signals take place. Strategy is suggested to be used in combination with other ones.

Source: forex-strategies-revealed

forex trading examples

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Double Stochastic Strategy ~ forex trading drawdown

6:58 AM in double, Forex, high, low, rsi, stochastic, strategy

By doubling on Stochastic analysis we are doubling on trading accuracy... However, one should remember that with each new Forex tool added complexity can appear; and a very complex approach is not always good.

Strategy Requirements:

Currency pairs: ANY

Time frame chart: 1 hour, 1 day

Indicators: Full Stochastic (21, 9, 9) and Full Stochastic (9, 3, 3).

Entry rules: When the Stochastic (21, 9, 9) lines’ crossover appears – enter (or wait for the current price bar to close and then enter). It will be the major trend. 

Look at Stochastic (9, 3, 3) to anticipate swings inside the main trend and re-enter+ the market again – additional entries. Also ignore the short-term moves Stochastic (9, 3, 3) that signal for exit – do not exit early until Stochastic (21, 9, 9) gives a clear signal to do so.

Exit rules: at the next cross of major Stochastic (21, 9, 9) lines.

Advantages: using two Stochastic indicators helps to see the major trend and the swings inside it. This gives more accurate entry ruless and gives a good exit rules.

Disadvantages: needs constant monitoring, and again we are dealing with a lagging indicator.

Source: forex-strategies-revealed

forex trading drawdown

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