Flat Trend RSI Forex Trading Strategy

The Flat Trend RSI forex trading strategy is built for traders who seek to profit off the currency markets trading a reliable and simple forex trading strategy.

The setup for this astonishing trading strategy is easy to spot and just about anyone can adopt it.

Chart Setup

MetaTrader4 Indicators: Flat Trend RSI.ex4 (default setting), 100pips Momentum.ex4 (default setting), (T_S_R)-Big Trend.ex4 (default setting)

Preferred Time Frame(s): 1-Minute, 5-Minute, 15-Minute, 30-Minute, 1-Hour, 4-Hour, 1-Day

Recommended Trading Sessions: Any

Currency Pairs: Low spread forex pairs (max. 5 pips)

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Buy Trade Example

Fig. 1.0

Strategy

Long Entry Rules

Enter a buy order if the following indicator or chart pattern gets displayed:

  1. If the line of the (T_S_R)-Big Trend indicator (at this point it is usually colored magenta) crosses the lines (blue & red) of the 100pips Momentum custom indicator bottom up, price is said to be pressured to the upside i.e. a trigger to buy the pair of interest.
  2. If the deep sky blue vertical lines of the Flat Trend RSI custom indicator forms above the 0.00 level as depicted on Fig. 1.0, the sentiment in the market is said to be bullish, hence a signal to go long on the designated currency pair.

Stop Loss for Buy Entry: Place stop loss 2 pips below immediate support.

Exit Strategy/Take Profit for Buy Entry

Exit or take profit if the following rules or conditions takes center stage:

  1. If the line of the (T_S_R)-Big Trend indicator crosses the lines (blue & red) of the 100pips Momentum custom indicator top downward as shown on Fig. 1.0, price is believed to be entering a reversal stage, hence an exit or take profit is advised.
  2. If the red vertical lines of the Flat Trend RSI custom indicator forms below the 0.00 level, it is an indication of a looming price dip, hence an exit or take profit is recommended.

Sell Entry Rules

Take up short position(s) if the following holds sway:

  1. If the line of the (T_S_R)-Big Trend indicator (at this point it is usually colored lime) crosses the lines (blue & red) of the 100pips Momentum custom indicator top downward, price is said to be pushed lower i.e. a trigger to sell the pair of focus.
  2. If the red vertical lines of the Flat Trend RSI custom indicator forms below the 0.00 level as depicted on Fig. 1.1, the sentiment in the market is said to be bearish, hence a trigger to sell the selected fx pair.

Stop Loss for Sell Entry: Place stop loss 2 pips above immediate resistance.

Exit Strategy/Take Profit for Sell Entry

Exit or take profit if the following takes center stage:

  1. If the line of the (T_S_R)-Big Trend indicator crosses the lines (blue & red) of the 100pips Momentum custom indicator bottom up as seen on Fig. 1.1 during a sell trigger, an exit or take profit is advised.
  2. If the deep sky blue vertical lines of the Flat Trend RSI custom indicator forms above the 0.00 level, it is an indication of an impending price appreciation, hence an exit or take profit is recommended.

Sell Trade Example

Fig. 1.1

Free Download

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About The Trading Indicators

The 100pips Momentum indicator offers bullish and bearish entry signals.

This is due to the indicator’s make i.e. being made up of four technical studies with the ATR volatility indicator included.

The (T_S_R)-Big Trend is a custom indicator that is used in gauging trend via the interaction of its red and blue lines.

The Flat Trend RSI is an enhanced Relative Strength Indicator that has its period set to 14.