Free RSI Forex Trading Strategy

The Free RSI forex trading strategy is a fantastic scalping and day trading strategy that is every traders’ delight.

Add the freescalpingindicator.ex4 and freeRSI.ex4 custom indicators to the listed currency pairs and what you’ll get is a system that will surely impress you regardless of your level expertise in the forex world.

Chart Setup

MetaTrader4 Indicators: freeRSI.ex4 (default indicator), freescalpingindicator.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minutes

Recommended Trading Sessions: Any (London, New York, Tokyo)

Currency Pairs: majors, currency crosses

Download

Download the Free RSI Forex Trading Strategy

Buy Trade Forex Example (Click the image for full size)

free-rsi-forex-trading-strategy

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy if the following conditions or rules are met:

  1. If the combination of the DeepSkyBlue and magenta lines are aligned above the LimeGreen and Yellow lines of the freeRSI.ex4 custom indicator, with both breaking above the 50 level, then we can say that price is pushing higher and as such a clear bullish signal.
  2. If the lime colored histogram of the freescalpingindicator.ex4 custom indictor forms above the 50.00 level, it is a buy trigger.

Stop Loss for Buy Entry: Place stop loss ~ 1 0–  15 pips below entry price.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit on position(s) if the holds true:

  1. If the combination of the DeepSkyBlue and magenta lines crosses the LimeGreen and Yellow lines of the freeRSI.ex4 custom indicator downwards as shown on Fig. 1.0, it is a call-to-action to exit or take profit on position(s).
  2. If the lime colored histogram of the freescalpingindicator.ex4 diminishes into the 0.00 and subsequently forms red histograms below the 0.00 level, then an exit or take profit is appropriate.

Sell Entry Rules

Enter a sell if the following indicator or chart pattern are in display:

  1. If the combination of the DeepSkyBlue and magenta lines are aligned above the duo of a LimeGreen and Yellow lines of the freeRSI.ex4 custom indicator, with both lines breaking below the 50 level, it signals a sell.
  2. If the red colored histogram of the freescalpingindicator.ex4 forms below the 0.00 level, it is an indication that price is pressured lower, thus indicating a sell signal.

Stop Loss for Sell Entry: Place stop loss ~ 10 – 15 pips above entry price.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit on position if one of the following conditions or rules are met:

  1. If the combination of the DeepSkyBlue and magenta lines crosses the LimeGreen and Yellow lines of the freeRSI.ex4 custom indicator upwards as shown on Fig. 1.1, it is a trigger to exit or take profit on position(s) accordingly.
  2. If the red colored histogram of the freescalpingindicator.ex4 retracts upwards into the 0.00 and forms a lime histogram above the level, traders should consider exiting position(s).

free-rsi-forex-trading-system

Fig. 1.1

Free Download

Download the Free RSI Forex Trading Strategy

About The Trading Indicators

The freeRSI.ex4 custom indicator is an advanced RSI indicator that built on the RSI indicator itself, Envelope periods and 3 Moving Averages.

The freescalpingindicator.ex4 on the other hand is an indicator designed by Karl Dittman and is deployed as a trend following indicator for intraday traders.

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