Today I'm bringing you a system that uses simple price action, fibonacci and 1 basic indicator.
As simple as they come, everyone has to start somewhere.
On the 4 hour chart, after the price made at least 1 higher low, with the RSI remaining above 30, followed by the price going up and RSI crossing 50, a buy signal is generated.
The entry is going to be 23.6% retrace from the top, and this trade is cancelled if the price just continues for many candles without pulling back.
Set a stop loss at 50% retrace and target of 4R.
I would start on GBPUSD, check a few examples, try it out, and then if it works out start looking around other pound pairs as well as try to optimise the system as I'm learning more.
Some optimisation paths: It seems to work best as a downtrend is reversing and when the price crosses the 50 rsi line with violent green candles after bottoming.
A couple of examples:
Do not use a system without testing it first.
As simple as they come, everyone has to start somewhere.
On the 4 hour chart, after the price made at least 1 higher low, with the RSI remaining above 30, followed by the price going up and RSI crossing 50, a buy signal is generated.
The entry is going to be 23.6% retrace from the top, and this trade is cancelled if the price just continues for many candles without pulling back.
Set a stop loss at 50% retrace and target of 4R.
I would start on GBPUSD, check a few examples, try it out, and then if it works out start looking around other pound pairs as well as try to optimise the system as I'm learning more.
Some optimisation paths: It seems to work best as a downtrend is reversing and when the price crosses the 50 rsi line with violent green candles after bottoming.
A couple of examples:
Do not use a system without testing it first.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.