Powerful forex strategy that almost never produces trades, that are against major trend. RSI forex indicator helps to pick great exit points and establish interesting risk reward ratio.
This strategy can be used on any currency pair on 4 H timeframe.
Forex indicators:
EMA (Exponential moving average) : 150 and 200, both applied on close price
SMA (Smoothed moving average) : 30(applied on close)
Entry:
In bullish market:
EMA 150 trending above EMA 200 (uptrend). SMA 30 above both EMA lines.
Price closes below 30 SMA. Once, the price closes back above 30 SMA we enter the long position.
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In bearish market:
EMA 150 trending below EMA 200 (downtrend). SMA 30 under both EMA lines. Price closes above 30 SMA. Once, the price closes back under30 SMA we enter the short position.
Stop loss:
1 PIP above previous high (Short position).
1 PIP below previous low (Long position)
Take profit:
RSI 21:
To exit buy position we wait to RSI to rise above 70 line.
To exit sell position we wait for RSI to fall below 30 line.
