RSI MTF Forex Trading Strategy
The RSI MTF (multi-time frame) Forex trading strategy is a friendly and approachable trading system that is simple to read and understand.
It clearly reveals its unparalleled ability to get favorable trading results when the rules are carefully followed.
The ability to determine market trends easily is always of utmost significance to the currency trader looking to pile profits.
Being able to combine the overbought/oversold price features is strategic for this trading strategy.
Nonetheless, we’re employing a simple trend spotting trick alongside that is in itself useful and profitable.
MetaTrader4 Indicators: all-rsi-indicator.ex4 (Inputs Parameter Modified; RSIperiod=10, barsPerTimeFrame=3500000), moving-average-candlesticks.ex4 (Inputs Parameter Modified; MAPeriod=36, MAType=1, Colors Width Modified; #0=3, #1=3)
Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minutes, 30-Minutes, 1-Hour, 4-Hours, 1-Day, 1-Week
Recommended Trading Sessions: Any
Currency Pairs: Any pair
Buy Trade Example
Long Entry Rules
Enter a bullish trade if the following indicator or chart pattern gets put on display:
- If the all-rsi-indicator becomes oversold (gold line falls below the 30 level) and subsequently breaks above the said level upwards as seen on Fig. 1.0, buying pressures is said to be mounting, hence a trigger to go long on the selected forex pair.
- If the blue bars of the moving-average-candlesticks Metatrader 4 forex indicator stay aligned somewhat below price bars as indicated on Fig. 1.0, it is signaling increased bullish pressures, hence an alert to go long on the currency pair of focus.
Stop Loss for Buy Entry: Place stop loss 3 pips below short-term support.
Exit Strategy/Take Profit for Buy Entry
Exit or take profit from all trades if the following rules or conditions takes precedence:
- If the gold line of the all-rsi-indicator break below the 70 level while a bullish trend is ongoing (see Fig. 1.0), bullish momentum is said to be weaning, hence an exit or take profit will suffice.
- If the moving-average-candlesticks custom indicator displays a yellow bar during the course of a bullish signal, a possible U-turn in price direction is said to be on the horizon, as such, an exit or take profit will do.
Sell Entry Rules
Go short if the following setups gets displayed successfully on the activity chart:
- If the all-rsi-indicator becomes overbought (gold line surges above the 70 level) and then falls below the said level downwards as exemplified on Fig. 1.1, selling pressures is said to be growing, therefore a sell signal is appropriate.
- If the yellow bars of the moving-average-candlesticks indicator stay positioned fairly above price bars as illustrated on Fig. 1.1, it is a trigger to go short on the currency pair of interest.
Stop Loss for Sell Entry: Place stop loss 3 pips above short-term resistance.
Exit Strategy/Take Profit for Sell Entry
Exit or take profit if the following takes center stage:
- If the gold line of the all-rsi-indicator break above the 30 level during a bearish trend (refer to Fig. 1.1), bearish momentum is said to be halting, hence an exit or take profit will do.
- If the moving-average-candlesticks custom indicator displays a blue bar during the course of a bearish signal, a possible bullish reversal is said to be imminent, as such, an exit or take profit is recommended.
Sell Trade Example
About The Trading Indicators
The all-rsi-indicator.ex4 is a multi-time frame oscillator indicator that defines overbought and oversold market state.
The moving-average-candlesticks.ex4 indicator offers chart visualization of standard moving averages using candlestick bars.