Daily Forex Strategy With RSI Indicator
A simple yet profitable strategy to trade the daily charts.
It’s made up of the RSI indicator and a custom built EMA trend indicator.
This strategy requires patience and can be used for larger profit targets (even up to 1000 pips).
Indicators: RSI (6), EMA_Trend_Indicator.ex4
Preferred time frame(s): daily
Trading sessions: Any
Preferred Currency pairs: Any
EUR/USD Daily Chart
As shown in the illustration above, EUR/USD price trades above the EMA trend indicator and the RSI goes back above the 70 level from below 30.
Both trading conditions are fulfilled and we buy the EUR/USD pair. Click the chart to enlarge.
- Condition 1: Price above the EMA_Trend_Indicator
- Condition 2: RSI (6) back above 70 from below 30
Execute buy order with stop-loss below the previous swing low.
Scaling out: Take 50% partial profit at risk-to reward 1:1 and the rest at 1:2 or at previous swing highs (trail your stop up).
- Condition 1: Price below the EMA_Trend_Indicator
- Condition 2: RSI (6) back below 30 from above 70
Execute sell order with stop-loss above the previous swing high.
Scaling out: Take 50% partial profit at risk-to reward 1:1 and the rest at 1:2 or at previous swing lows (trail your stop down).