Twin RSI - simple trading strategy (Twin RSI - simple trading strategy)
Double RSI
This is a mechanical but simple trading strategy. Just follow the steps that I will explain below and you will find that your trading job becomes very easy and stress-free.
First, chart setup (template attached for convenience). Fast rsi (yellow) cycles = 2, high = 70, low = 30. Slow rsi (red) period = 14, upper limit = 56, lower limit = 44. Both rsi's are set in the same window.
3 trading strategies can be applied using the same chart settings. I will explain one of the factors that will generate more deals. The basic principles behind this strategy are:
1) The market is moving sideways.
2) Any rise or fall never lasts long. There is a good chance that the market will reverse in the opposite direction after a surge.
3) Place an order in the opposite direction of the peak to profit from its eventual reversal.
4) Choose currencies with high correlation (https://www.myfxbook.com/forex-market/correlation), which tend to be more stable.
5) Make sure there is no upcoming news of major impact on the currency pair you want to trade.
6) Avoid high volatility, we are looking for a quiet and stable movements for the targeted pair.
7) I prefer trading on the H4 timeframe. Market cost spread will form a higher proportion to the net profit or loss for trading the lower timeframes.
Open a buy market order.
1) The slow RSI must remain between the upper and lower limits.
2) At the close of a falling bar (open price > close price), it is better to use a larger candle body.
3) Rapid RSI penetrates from above and crosses the upper and lower ranges at the same time.
4) Rapid RSI must close above the low.
5) Open a buy market order at the bar close.
Stop loss.
1) When the fast RSI closes below the 15 level and/or the slow RSI closes below the lower range
2) When trader's pre-set stop loss level is triggered
Take profits.
1) When the fast rsi closes above upper level
2) When the trader’s preset take-profit level is triggered
Things to note:
Use the reverse steps to trade a sell order.
Depending on a trader's risk profile, there are a variety of ways to improve a strategy's yield.
1) Use trend indicators such as ADX and Momentum to further confirm the sideways market.
2) Use the Currency Strength Meter to select two currencies with similar strength.
3) Change RSI parameters to increase/decrease risk.
Good luck!
Annex g
This is a mechanical but simple trading strategy. Just follow the steps that I will explain below and you will find that your trading job becomes very easy and stress-free.
First, chart setup (template attached for convenience). Fast rsi (yellow) cycles = 2, high = 70, low = 30. Slow rsi (red) period = 14, upper limit = 56, lower limit = 44. Both rsi's are set in the same window.
3 trading strategies can be applied using the same chart settings. I will explain one of the factors that will generate more deals. The basic principles behind this strategy are:
1) The market is moving sideways.
2) Any rise or fall never lasts long. There is a good chance that the market will reverse in the opposite direction after a surge.
3) Place an order in the opposite direction of the peak to profit from its eventual reversal.
4) Choose currencies with high correlation (https://www.myfxbook.com/forex-market/correlation), which tend to be more stable.
5) Make sure there is no upcoming news of major impact on the currency pair you want to trade.
6) Avoid high volatility, we are looking for a quiet and stable movements for the targeted pair.
7) I prefer trading on the H4 timeframe. Market cost spread will form a higher proportion to the net profit or loss for trading the lower timeframes.
Open a buy market order.
1) The slow RSI must remain between the upper and lower limits.
2) At the close of a falling bar (open price > close price), it is better to use a larger candle body.
3) Rapid RSI penetrates from above and crosses the upper and lower ranges at the same time.
4) Rapid RSI must close above the low.
5) Open a buy market order at the bar close.
Stop loss.
1) When the fast RSI closes below the 15 level and/or the slow RSI closes below the lower range
2) When trader's pre-set stop loss level is triggered
Take profits.
1) When the fast rsi closes above upper level
2) When the trader’s preset take-profit level is triggered
Things to note:
Use the reverse steps to trade a sell order.
Depending on a trader's risk profile, there are a variety of ways to improve a strategy's yield.
1) Use trend indicators such as ADX and Momentum to further confirm the sideways market.
2) Use the Currency Strength Meter to select two currencies with similar strength.
3) Change RSI parameters to increase/decrease risk.
Good luck!
Annex g
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