The Relative Strength Index (RSI) Foreign Exchange Trading Strategy with Awesome Oscillator

The Relative Strength Index (RSI) foreign exchange trading strategy with awesome Oscillator is established on two indicators, the RSI as well as Awesome Oscillator indicators.

The RSI is very well-known foreign exchange indicator utilized by majority of foreign exchange traders while searching for factors such as:

  1. Overbought conditions.
  2. Oversold market conditions.
  3. Finding the actual strength of a given trend.

In this situation, the Relative Strength Index is utilized in determining oversold and overbought market conditions while as the awesome oscillator is utilized as an exchange filter for reducing the false purchase or auction signals generated.

Features

  1. Any currency pair should work fine.
  2. Any timeframe should work perfect but highly recommend 15 minutes and above.
  3. RSI and awesome oscillator indicators should have default settings.

Purchase Rules

  1. Relative Strength Index must bypass the 30 level inline from beneath to uppermost.
  2. Next, examine to observe if there is a green bar on the awesome oscillator indicator. If there is, then proceed to the third step.
  3. Position a purchase stop order at least two pips higher up, the high of the candlestick that resembles to the second step.
  4. Position your stop-loss order two pips beneath the closest swing low or if that too by far, position it “X” pips at a distance from your starting price.
  5. For the take-gain, utilize the prior swing high point or if that is too by far or doesn’t exit, then utilize 1:2 or three risk to reward to forecast where you will achieve your gain.

Auction Rules

  1. Relative Strength Index must bypass the 70 level inline from uppermost to beneath.
  2. Next, examine to observe if there is a red bar on the awesome oscillator indicator. If there is, then proceed to the third step.
  3. Position your auction stop order at least two pips beneath the low of the candlestick that resembles to the second step.
  4. Position your stop-loss two pips higher up the closest swing high or if that is too by far, position it “X” pips at a distance from your starting price.
  5. For take-gain, utilize the prior swing low point or if that is too by far or doesn’t exit, then utilize 1:2 or three risk to reward to forecast where you will achieve your gain.

Make reference to this chart below where you can observe instances of a purchase and auction setups:

the-relative-strength-index-rsi-foreign-exchange-trading-strategy-with-awesome-oscillator

Danger-SignUtilize this strategy at your own risk. WindsorForex.com cannot be responsible for any losses associated with using any strategy presented on the site. It’s not recommended to use this strategy on the real account without testing it on demo first.

 

 

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About The Author

Mike N

Financial Trading Systems Design Expert

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