When RSI is above 70, the market is considered overbought. When RSI is below 30, the market is considered oversold. WHAT IS THE RSI FOREX INDICATOR? It oscillates between zero and HOW TO TRADE THE RSI Buying Rules: RSI must cross the 30 level line to the downside. Then wait for it to move back up above the 30 level. Buy when RSI is above the 30 line and is pointing up. Make sure the candlestick is closed first before you buy to ensure that the RSI is definitely above the 30 level.

set you stop loss pips above the high of the candlestick that made the RSI line pointing up when that candlestick closed. Set your take profit target 3 times what you risked or you can use previous swing high point as your take profit target. Selling Rules: RSI must cross the the 70 level line to the upside first. Then you have to wait and watch for it to fall back down below the 70 level. As soon as the RSI is below the 70 line and the RSI is pointing downward you sell.

Make sure that the candlestick closes first before you initiate a sell order. ok, for take profit, set it to 3 times what you risked initially or look for a previous swing low point and use that level as your take profit target level.

you need to combine RSI with others to make if work effectively. As usual, the entries and exits are quite simple and include a unique trade filter which doubles the performance! I hope you find this video useful. These are exactly the types of video and strategy I was searching for years ago before I began developing my own.

I am not a financial advisor and I am not offering you financial advice. I am not regulated in any way. The purpose of the content I provide is for educational purposes only. Any information you receive is based on my own knowledge and experience in the financial markets and how you act on the information provided is your own responsibility. I cannot be held responsible for any losses you may incur as a result of ideas taken from my content provided. I really like your videos I can't remember the guy's name but I started watching some of his videos all he did was buy pullbacks and he didn't back anything up with train station or whatever it is that you use so if you didn't get the trade right your feelings were wrong you know you're instinct.

I have access to trading software and I'm kind of new to listening to you but I don't have unlimited funds is it normal for you just not to use stop losses in your orders.

Hey Jarrod, I'm a big fan of yours. I went through a similar journey of losing a lot of money, feeling frustrated and then finally got into mechanical trading. I have seen almost all of your videos. Keep up the good work. A bit confused…. which one do you recommend we follow? I didn't catch that nice Buy trade from There seems to be a string of 6 losses which Multicharts doesn't seem to show for these dates. Perhaps these dates are missing too.

The day of month optimization has been applied. Slippage affected the first trade extending the maximum loss figure to pips. Just found this, Great video!! How do you come up with all these strategies? Just one question: when saying enter on day three, for example a Wednesday , we enter at what time, EST?

So Wednesday, at English times? Thanks a bunch🙌🏽.

Using The RSI indicator by itself as a forex trading strategy is not a good idea. RSI indicator is best combined with other forex indicators and tools to create a trading strategy to give it a much more reliable performance.

When a market is in an uptrend for a period of time, it wont continue going in up. At some stage in time, the uptrend will change to a downtrend. So if you see RSI above 70 and then it starts to go down below 70 level then it may mean the the market may be changing to a downtrend. The opposite is also true, when RSI is in an oversold condition, it means that the market has been in a downtrend for some time and now it may be due to change to an uptrend when RSI line starts to cross the level 30 and points up.

So there you have it…RSI indicator is used for determining the market oversold and overbought conditions. RSI stands for Relative Strength Index and is a momentum oscillator. Name required. Mail will not be published required. RSI Forex Trading Strategy Using The RSI indicator by itself as a forex trading strategy is not a good idea.

When RSI is above 70, the market is considered overbought. When RSI is below 30, the market is considered oversold. WHAT IS THE RSI FOREX INDICATOR? It oscillates between zero and HOW TO TRADE THE RSI Buying Rules: RSI must cross the 30 level line to the downside.

Then wait for it to move back up above the 30 level. Buy when RSI is above the 30 line and is pointing up. Make sure the candlestick is closed first before you buy to ensure that the RSI is definitely above the 30 level. set you stop loss pips above the high of the candlestick that made the RSI line pointing up when that candlestick closed.

Set your take profit target 3 times what you risked or you can use previous swing high point as your take profit target. Selling Rules: RSI must cross the the 70 level line to the upside first. Then you have to wait and watch for it to fall back down below the 70 level. As soon as the RSI is below the 70 line and the RSI is pointing downward you sell. Make sure that the candlestick closes first before you initiate a sell order.

ok, for take profit, set it to 3 times what you risked initially or look for a previous swing low point and use that level as your take profit target level. you need to combine RSI with others to make if work effectively.

Try to combine this RSI Trading Strategy with Price Action Trading , it may be a much better system than just using the RSI by itself. Posted in Basic Swing Strategies. Heikin Ashi Trading System ». Leave a Reply Click here to cancel reply. Copyright © - About Us Contact Advertise Sitemap Privacy Policy Disclaimer. Powered by WordPress Designed by: Free WordPress Themes Thanks to Best WordPress Themes , Best Wordpress Hosting and Promo Codes.

Remember that all technical indicators such as the RSI and moving averages NEED price to happen first before it calculates. To explain oversold and overbought: If the momentum in price movement is increasing to the upside, an over extension will lead the oscillator into the overbought zone, generally the 70 level. Make sure that the candlestick closes first before you initiate a sell order. Generally, I still with the majors and add in a few others such as EURJPY and GBPCHF. I show you a method of using RSI Relative Strength Index when trading a mean reversion trading strategy. Here you will discover which indicators have been utilized with this one. Buy when RSI is above the 30 line and is pointing up.

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