RSI Daily Pivot Point System v2.0 (RSI Daily Pivot Point System v2.0)

Okay, so,

I decided to make a more "newbie" friendly version. There are some changes compared to the original, but mainly the (word)/(important information) ratio will be greatly reduced.

method

1. Set up daily chart with candlesticks. Also, set RSI(10).
2. Find the pivot point. What is a pivot point? See the documentation below.
3. Let's say we have a low pivot point, thus creating a minimum. Look at the highest price of the smallest candle. Write down this number.
4. Add the spread to that number. If you don't know what a spread is, add 3 pips. This is your "magic number." Why is it so amazing? Because when it is surpassed, you have to look at the scene below to see whether you buy it or not.

scene

NOTE: These are buy scenarios when the low pivot has just occurred and the "magic number" has been exceeded.

1. RSI > 50. Slope Up = Buy
2. RSI > 40 and just started from 30. Rising slope = buy
3. Otherwise, don't do anything.

NOTE: These are sell scenarios when the high pivot has just occurred and the "magic number" has been surpassed.

1. RSI <50. Slope Down = Sell
2. RSI < 60 and just started from 70. Slope Down = Sell
3. Otherwise, don't do anything.

Note: If the RSI has not been confirmed for more than 3 days after the pivot point, do not act on the trade.

A note about pivot points

The pivot point alternates between high pivot and low pivot. In other words, you cannot have 2 high pivots or 2 low pivots in a row. When the low pivot point appears as shown below, you will enter high pivot mode where you will observe the high pivot point. This requires focusing on high value from that point forward. When you find that the high value is no longer increasing, this should be a red flag that it may be a high pivot. When it exceeds this magic number, you know it's a high pivot. If it is indeed a high pivot, then you will go into low pivot mode, using the same process to see the lows.

stop loss

NOTE: I do not use take profit. Please don't ask me what my take profit is.

1. Let's say you just bought it . Your initial stop loss will be the nearest lowest pivot point, or 100 pips, whichever is lower. For sell positions only use high pivot max
2. Now let's say BUY that the position you entered is moving in your favor (up). Move stop loss low each completed day.
3. Now let's say the sell position you entered is moving in your favor (downward). Move your stop loss to High each completed day.

Here's an example:

1. The red lines are the highest and lowest pivot points.
2. The yellow line is the "magic number"
3. The purple line is where I check the RSI and scenario to see if this is a good trade.
4. The two light blue lines are qualifying transactions.

When to add to a position

If you are in a long trade and the RSI slope increases in magnitude, buy more. This means steeper slope = buy more.
The same is true for one selling trade.

Best trading time of the day

The day is over. For me, it's 8-10 PM (Central Standard Time).

Transactions are at your own risk. I am not responsible for your losses. Most importantly good luck!