Versatility of RSI forex indicator is once more demonstrated in this scalping forex strategy. It uses two slow period RSI, to separate the trending and ranging market. Furthermore, another RSI, together with simple candle signal is used to enter the trade with tight stop loss and almost always in the direction of main trend.
Strategy works with different settings across many timeframes and most of currency pairs. Test shows impressive results for EURUSD pair.
Strategy was tested on 1H EURUSD data from 01.012013 to 01.012016.
Get expert advisor trading this forex strategy
Used forex indicators
For the best results, trade with professional ECN/STP broker with MT4. If you can't trade with profit. Automatically copy the traders that are already profitable.
RSI (relative strength index) 50, 14 and 3. Slow and medium period RSI (50 and 14) will filter the trend. Additional lines of 51 and 49 are used in both of them. Both RSI trending above 51 lines – uptrend. Both trending below 49 – downtrend. We will enter only trend following scalping positions. Entry signal is based on RSI (3) + bullish candle in downtrend and bearish candle in uptrend.
Forex strategy rules
SELL:
Both RSI 50 and 14 trending below 49 line signalizing downtrend.
RSI 3 rises above 70 line. We enter the trade short on bullish candle close.
Stop loss: 20 pips
Take profit: 5 -8 pips.
BUY:
Both RSI 50 and 14 trending above 51 line signalizing uptrend.
RSI 3 falls below 30 line. We enter the trade short on bearish candle close.
Stop loss: 20 pips
Take profit: 5 -8 pips.
Notes: Free expert advisor is provided for this forex strategy. You can use it to test this trading system for various conditions.
We recommend you to use this forex strategy with one of our trusted forex brokers (STP/ECN with MT4 bridge).
To win you must trade with broker on your side.
Dislaimer: Expert advisor was tested for profitability on historical data. All screen shots provided are displaying real results of the test. However past data will never guarantee future success. Every expert advisor needs to be tested properly on demo account. LIVE use only on your own risk. Read full disclaimer.
TheForexKings Team does not give any financial advice. TheForexKings does not take any responsibility for any user’s investments and investment decisions. All rights reserved. Strictly for personal use.
