Author:
OneStepRemoved.com MetaTrader Programming
Hey fellow traders! Today, let’s dive into the RSI Trend Strategy—an easy-to-use trading system that relies on the RSI (Relative Strength Index) indicator to help you make those crucial buy or sell decisions. Here’s how it works:
- When the RSI breaks above 73, it’s a signal to buy.
- Conversely, if it dips below 27, it’s time to sell.
But wait, there's more! This trading system also employs Average True Range (ATR) to determine exit prices. Here’s the breakdown:
- Once you enter a trade, your stop loss is set three ATRs below the entry price.
- If the trade goes in your favor and moves more than three ATRs, your stop loss gets adjusted to break even.
- As the trade progresses positively, a trailing stop of three ATRs helps you lock in profits while giving the price room to run.
Now, what exactly is Average True Range? It's a nifty measure of volatility that gives you a clearer picture of market fluctuations, especially in those fast-moving markets like Forex and commodities.
So, if you’re looking to refine your trading strategy and make the most of those RSI signals, give this system a whirl. Happy trading!
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