3X RSI scalping FOREX strategy

RSI is one of the most versatile forex indicator ever created. It can be used both to identify trend and the end of the correction for position timing. This forex strategy takes full advantage of RSI, employing it as trend identification, position signal, and filter. This scalping strategy also uses equal stop loss and take profit, making it relatively low risk strategy, able to withstand even the most unpredictable market conditions. 

 

Average profit and loss is about 10 pips. In this random market situation strategy closed 10 trades of which 9 were profitable. Making us 80 pips, just like that !

 

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.

 

Used forex indicators

RSI (relative stregth index) 60 (thick red line)

RSI 18 (thick blue line) applied in first indicators data

RSI 2 (thin green line) applied in first indicators data

Standard 70 and 30 lines will be used.

We trade in 5 min charts using EURUSD or USDJPY pair.

 

Forex strategy rules:

Buy

 

RSI 18 (blue) trending above RSI 60 (red).

RSI 2 falls below 30 line. We wait for first subsequent bullish candle to close. We enter immediately on candle close. Placing stop loss below the low of the formation. At this price, we will exit the position manually with loss. Distance between the entry and our loss will be used as profit target (Take profit equals stop loss).

 

Sell

 

RSI 18 (blue) trending below RSI 60 (red).

RSI 2 rises above 70 line. We wait for first subsequent bearish candle to close. We enter immediately on candle close. Placing stop loss above the high of the formation. At this price, we will exit the position manually with loss. Distance between the entry and our loss will be used as profit target (Take profit equals stop loss).

 

Notes to the strategy: In five minutes timframe there is usually no time for hesitation. Avoid trading in volatile market, when price can move, or even gap rapidly. If market conditions allows it places the stop and target immediately after position entry if not, exit position manually on predefined price levels.

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ABOUT US

THEFOREXKINGS

“Trading FOREX since 2006. Full time trader and web developer since 2013. My two biggest hobbies are trading and web development. In TheForexKings I managed to connect both of them. Even after 12 years of trading I still have the same passion for the market as at the beginning. The aspect I enjoy the most : development and testing of new ideas.” 

 

Only in 2016 - 2017 we have created more than 400 forex strategies. During this period we have also developed and published +200 MT4 Expert advisors based on those strategies. We are dedicated to provide you with viable and complete trading systems that have thrived in extensive historical testing. We want to give you complete and transparent trading solutions, that once mastered ,will set you financially free. We want to give you a fighting and winning chance in the market. ” 

—  Marian, Proprietor of TheForexkings.com