The Trend RSI forex trading strategy is designed to work on the basis of rebound in the currency market and it deploys a simple setup mechanism that just about any trader can adopt.
A set of basic indicators, lined with some simple rules, defines the ingredient for this amazing system.
Chart Setup
MetaTrader4 Indicators: triangulatMA.ex4 (Inputs Variable modified; Periods=47), Triggerlines.ex4 (default setting), TrendRSI_v1.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: Any pair
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Buy Trade Example
Fig. 1.0
Strategy
Long Entry Rules
Place a buy order if the following indicator or chart pattern gets displayed:
- If the thin red line of the triangulatMA.ex4 custom indicator intersects the more bolded lines (red & blue) of the Triggerlines.ex4 custom indicator bottom up as shown on Fig. 1.0, price is said to be pressured higher, hence a trigger to buy the asset of choice.
- If the magenta line of the TrendRSI_v1 custom indicator breaks and stays above the 50.00 level, it is a pointer to a looming bullish trend, hence a signal to buy 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 precedence:
- If the thin red line of the triangulatMA.ex4 custom indicator crosses the more bolded lines (red & blue) of the Triggerlines.ex4 custom indicator top downward (refer to Fig. 1.0), it is an indication that price surge is halting, hence an exit or take profit will suffice.
- If the magenta line of the TrendRSI_v1 custom indicator breaks below the 50.00 level during an ongoing bullish sentiment, an exit or take profit is recommended.
Sell Entry Rules
Enter a sell if the following holds sway:
- If the thin red line of the triangulatMA.ex4 custom indicator intersects the more bolded lines (red & blue) of the Triggerlines.ex4 custom indicator top downward as illustrated on Fig. 1.1, price is said to be taken lower, hence a trigger to sell the asset of choice.
- If the magenta line of the TrendRSI_v1 custom indicator breaks and hovers below the 50.00 level, it is a pointer to an impending bears market, hence a trigger to sell the specified currency 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:
- If the thin red line of the triangulatMA.ex4 custom indicator crosses the more bolded lines (red & blue) of the Triggerlines.ex4 custom indicator bottom up as shown on Fig. 1.1, it is an indication that the falls in price is weaning, hence an exit or take profit will do.
- If the magenta line of the TrendRSI_v1 custom indicator breaks above the 50.00 level during an ongoing bearish trend, an exit or take profit is advised.
Sell Trade Example
Fig. 1.1
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About The Trading Indicators
The triangulatMA.ex4 custom indicator is a moving average indicator that smoothens the price.
The Triggerlines.ex4 is a custom indicator that is designed after the moving average but is comprised of two lines, with changing colors, red for bearish signal and blue for bullish alert.
The TrendRSI_v1 custom indicator is an RSI indicator that is comprised of two signal lines, and can be used to determine breakout.