- Do not add other indicators. Use only what is shown by me in this thread so that you can see a clear chart and we can all discuss the same thing.
- Do not ask for proof or back test on how successful it is. If you are interested enough, you are required to forward or back test yourself. That's why this thread is in the Trading Journal section to test this idea.
- Before you want to show that this method fail, do so with a chart and check within the same day period are there other successful ones. With every failed one that you show, I can show you 2 successful one within that day or that week.
- I don't expect any questions on the use of this indicator and will not entertain any as this can be easily found in FF or elsewhere in the internet.
- I shall write in this thread only when I am available and at my own timing, and will not be cornered to quickly answer any queries.
- Programmers who can make an EA out of this and post here are welcome. We can further discuss on the stop loss and take profit part.
- No doubt some profiteers/scammers (cursed be their souls) will make money selling this instead while it is freely available in this thread.
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For those who like to trade the fast lane of m5 and m1 charts.
https://www.forexfactory.com/showthr...4#post12319924
RSI 50/50 Rules
- Main Indicators setting:
- 50 SMA
- RSI period 50 (untick the fixed min/max) and attach both 34 SMA and 13 SMA applied to RSI (as first indicator), or
- TDI with RSI period 50, volatility band 34, rsi price line 2 and trade signal line 13
- Day Main Trend (H1) and Intraday Trend (below H1):
Up trend: 50 SMA pointing up (preferably green)
Down trend: 50 SMA pointing down (preferably red)
- 5 Entry Types:
Trades can be made at a higher risk according to the current time frame 50 SMA direction without aligning with H1 50 SMA Main Trend.
1. Break Out Entry (RSI 50 matches 50 SMA direction):
A)
- Buy when RSI 50 closes above 50 horizontal line, 13 SMA and 34 SMA (order does not matter).
- Sell when RSI 50 closes below 50 horizontal line, 13 SMA and 34 SMA (order does not matter).
B)
RSI fractal break at support/resistance zone.
https://www.forexfactory.com/showthr...2#post12277722
2. Retracement Entries (13/34 SMA sloping angle going against 50 SMA direction):
A)
- Buy when RSI 50 remaining above 50 horizontal line, retraces below 13/34 SMA and then closes above either one of them.
- Sell when RSI 50 remaining below 50 horizontal line, retraces above 13/34 SMA and then closes below either one of them.
B)
- Buy when RSI 50 breaks the downward sloping trend line drawn on the RSI when 13/34 SMA is sloping down during an uptrend.
- Sell when RSI 50 breaks the upward sloping trend line drawn on the RSI when 13/34 SMA is sloping up during a downtrend.
3. 3 Bar Reversal pattern (bar 3 and bar 4 can be merged as one bar) for both trend continuation and counter trend.
- Buy 1 pip above signal candle high when price form a 3 Bar Reversal pattern at support zone.
- Sell 1 pip below signal candle low when price form a 3 Bar Reversal pattern at resistance zone.
https://www.tradingsetupsreview.com/...n-day-trading/
Example of a powerful concept and application where more than one type of entry condition is satisfied.
https://www.forexfactory.com/showthr...5#post12254125
*** In order to be more conscious and discipline of what we are trading, i request to mention 2 things in your trade.
1. whether current trend follows or counter main trend.
2. whether it's according to Rule 1a, 1b, Rule 2a, 2b, Rule 3 or a combination thereof.
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Simply put, this method uses 50 SMA to indicate the trend, and RSI 50 for timing entry on pullback/retracement.
The 50 SMA's sloping angle pointing up or down on the price chart acts as a filter.
When the 50 SMA is green, it indicates that the RSI is above the 50 horizontal line.
When the 50 SMA is red, it indicates that the RSI is below the 50 horizontal line.
In the example, I highlighted with yellow arrows where possible entries having higher chances of survival could be made with red 50 SMA pointing down, except for the second last one where red 50 SMA was pointing up.
https://www.forexfactory.com/showthr...7#post12240387
For better chances of success is to trade during London Open to Close on the 1st and 2nd waves of price with RSI 50/50 crossing under normal trending conditions. Price momentum during the 4th wave usually fades.
It will be more difficult for main trend reversal which we don't really know until some time later as price will be ranging for a period of time before resuming.
If I am unsure of the market conditions, normally I look for 6-9 pips profit (M5/15) for each trade which will give me 0.33% increase on my capital. Ideally try doing it 3 times successfully will give me a 1% day. If able to do it for 2 years, $10,000 compounding will be become $1,000,000.
However on a runaway trend for the more volatile pairs, I can even get more than 50 pips for one entry.
Always be conscious not to over trade or putting on large units/lots. These two are killers. If using MT4 keep the Margin Level above 300%. Remember always Capital Preservation first. This may ensure that your account will not get blown and be able to trade another day.
Various examples below, and there is one multi time frame trading with the htf m30 RSI pointing upward.
More example on multi time frame trading with RSI trend line.
https://www.forexfactory.com/showthr...3#post12246353
Example on 3 bar reversal entry on retracement.
https://www.forexfactory.com/showthr...2#post12248202
For those who have difficulty in seeing price flow and how i monitor pairs to trade.
https://www.forexfactory.com/showthr...6#post12238476
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I won't want to be here for long. Make hay while the sun shines
See how much can I bear with the bickering as I have seen enough of it in FF. ........ by that time I hope you get something out of this simple method.
No morning sun lasts a whole day, all good things must come to an end.
There is no never-ending feast, even you all feel reluctant to part from each other.
Everything has its wondrous moment of bloom before it fades away
If you find success and want to thank me, make some donations to a charitable organization of your choice.
You can show us your results as an inspiration for others.
Trade safe.
Cheers
NB: The maximum indicators attached had been reached. The balance is in post# 13, 31 and 48
https://www.forexfactory.com/showthr...1#post12224661
https://www.forexfactory.com/showthr...0#post12227630
https://www.forexfactory.com/showthr...6#post12229806