RSI with Moving Averages tool for trading - forex trading best hours

RSI with Moving Averages tool for trading ~ forex trading best hours

RSI removes volatility and gives signals flowing along with moving averages.
This tool for trading is constructed as follows:
2 moving averages on the price (7 simple and weighted 34) and two moving averages on the indicaatore RSI (4 smooted 21 and weighted).

Trend up
The 7 period Ma on price si above of the 34 Ma on price and
the 4 period MA on RSI is above of the 21 period on RSI.

Trend is down
The 7 period Ma on price si below of the 34 Ma on price and
the 4 period MA on RSI is below of the 21 period on RSI.

Trend is sideways up
The 7 period Ma on price si above of the 34 Ma on price and
the 4 period MA on RSI is below of the 21 period on RSI.

Trend is sideways down
The 7 period Ma on price si below of the 34 Ma on price and
the 4 period MA on RSI is below of the 21 period on RSI.

Time Frame 4H or Higher.

Another way of interpreting this technique and to add to the Levels of 60 and 40.
The area between these two levels is defined: the lateral area.
New trading rules.
Buy RSI above level 60.
Sell below the level 40 of the IHR.
If RSI is between 40 and 60 not to trade.

Example trend up
The 7 period Ma on price si above of the 34 Ma on price and
the 4 period MA on RSI is above of the 21 period on RSI.
RSI above 60 level.

Example trend down
Trend is down
The 7 period Ma on price si below of the 34 Ma on price and
the 4 period MA on RSI is below of the 21 period on RSI.
RSI below 40 level.

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Riding the Bull or Bear news strategy - forex market hours new year

Riding the Bull or Bear news strategy ~ forex market hours new year

Anticipating Results (Most Aggressive Strategy)

The trader has an intuitive feeling (a hunch) for the outcome of the economic data. It is not a wise strategy to put on a trade before an economic news announcement. But if the trader has an informed point of view, putting on thetrade before the news announcement is an aggressive play that can be very profitable if correct. The key risk of being wrong and having the price move against you is important to minimize.

Tactics for the aggressive strategy are as follows: About 15 minutes before the economic data release, locatethe5-minute or 15-minutec hart.Locate support and resistance levels. Use the average true range (ATR) at the default setting of 14 periods. Place a market order in the direction you desire. Place a stop loss order at 2 times the ATR. Should you put on a limit order? In trading the news, the idea is to be ready for a big move But we don’t know if a big move will come. So a small limit order targeting 10 to 15 pips would be like eating cake with artificial sweeteners. If you’re going to trade the news, focus on controlling the risk. The idea is to take a ride on the bull or bear, get on before the break of the news, and then try to stay on to get the most out of the move. So I don’t recommend a small limit. You might want to put on a larger limit of 75 pips.

Getting off the trade in a news event requires a high level of skills in identifying shifts in sentiment. Renko charts are a powerful tool for this. Remember, riding a bull or bear represents high risk. But if you want to try it out, do it with small lots on and test your skills.

Riding the Bull or Bear

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Trading with Force Index - forex trading hours and days

Trading with Force Index ~ forex trading hours and days

The Force Index developed by Alexander Elder is an indicator that uses price and volume . The Force Index can be used as trending indicator to reinforce the overall trend, for identify corrections of the markets or reversals trend with divergences.

In this trading system we use the Force Index with other indicators of trend.

Time Frame 30 min or higher.

Indicators:

• Moving Average - period 20, simple method, it’s normally above or below the price.

• Parabolic SAR - step 0.02, maximum 0.2, represented by the dots that are also found above or

below the price.

• MACD - fast ema,12, slow ema ,26, Macd sma ,9,

• Force Index - period 13, simple method.

MACD and Force Index are shown in two separate windows below the chart see picture.

Buy

The Moving Average should be below the price and point up;

The dot of the Parabolic SAR should be below the price;

MACD crossover upward below the ‘zero line’;

The Force Index should be point up.

Exit buy

Exit when the Parabolic SAR changes direction an is above the price, or also exit when the MACD crossover above the ‘zero line’.

Sell

The Moving Average should be above the price and point down;

The dot of the Parabolic SAR should be above the price;

MACD crossover downward above the ‘zero line’;

The Force Index should be point down.

Exit sell

Exit when the Parabolic SAR changes direction an is below the price, or also exit when the MACD crossover belw the ‘zero line’.

Stop Loss should be set to 20-30 pips away from the entry price for intraday trading with time frame 15 min and 30 min.

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