Post by Segwin on Apr 26, 2016 6:44:14 GMT -5
I thought about not posting this because of the typical chest beating and nit picking on how something doesn't work or how they have a better system however this is how I do it. I use two indicators - RSI & Slow Stochastic's.
Disclaimer: You have to know if the pair is in a Breakout, Channel/Trend or Range. You have to have a pretty good idea of direction. In a range I won't trade if the span is less than 30 pips. Also, the pair can stay in an overbought or oversold condition for a long time.
I have attached a 5 minute chart and a 1 minute chart for review. What I like the most about this system is that it is pretty spot on (unless it isn't lol - wacky things can and do happen in the Forex market).
I have alarms set for 65 and 35 on the RSI indicator. I do this because if I'm not glued to the screen I have it text my phone with an alert. I monitor the five minute chart for the most part. I may flick back and forth to the one minute chart, of the pair, to try and get a sense of direction. I'm always looking at the 5 and 1 minute chart of the dollar chart as I try to determine direction with the pair. I would say that I pay more attention to the dollar chart.
When the 5 minute chart gets close to my targets on the RSI indicator I then go to the one minute chart for that pair. Once I see the Slow Stochastic indicator cross over, with momentum, I place the trade.
There are times when the candlestick may run in a straight line so I'll draw a box around them to look for a breakout (because RSI will be pretty flat and centered) but for the most part I stick to my plan.
The best thing about this system is that your stop is just a few pips.
Good luck trading!
Disclaimer: You have to know if the pair is in a Breakout, Channel/Trend or Range. You have to have a pretty good idea of direction. In a range I won't trade if the span is less than 30 pips. Also, the pair can stay in an overbought or oversold condition for a long time.
I have attached a 5 minute chart and a 1 minute chart for review. What I like the most about this system is that it is pretty spot on (unless it isn't lol - wacky things can and do happen in the Forex market).
I have alarms set for 65 and 35 on the RSI indicator. I do this because if I'm not glued to the screen I have it text my phone with an alert. I monitor the five minute chart for the most part. I may flick back and forth to the one minute chart, of the pair, to try and get a sense of direction. I'm always looking at the 5 and 1 minute chart of the dollar chart as I try to determine direction with the pair. I would say that I pay more attention to the dollar chart.
When the 5 minute chart gets close to my targets on the RSI indicator I then go to the one minute chart for that pair. Once I see the Slow Stochastic indicator cross over, with momentum, I place the trade.
There are times when the candlestick may run in a straight line so I'll draw a box around them to look for a breakout (because RSI will be pretty flat and centered) but for the most part I stick to my plan.
The best thing about this system is that your stop is just a few pips.
Good luck trading!