A simple novice friendly system

FX:GBPUSD   British Pound / U.S. Dollar
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.
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Great observation....Will it work on other scrips?
+2 Reply
MrRenev rtscrudetrader9009
@rtscrudetrader9009, You mean other oscillators? Other pairs? Let me copy paste an answer I just made:

The idea is that after a reversal or in a trend there is a pullback, a bottom, and then the price goes up (preferably strongly) it hesitates a bit (entry) and the trend continues. An RSI very low setting will give earlier and more false signals, a setting too high will be too late.
You can use another oscillator or some fast moving EMAS crossing each other to get a signal, it's simply a filter and for novices a way to stick to the rules and not just do anything.
@MrRenev, ur point...will try with fast EMS as suggested ...
The simpler, the better...thank you so much
+1 Reply
I'm a fan of Fibonacci and Price action.. well-done..
Click on the image below to check some tips for trading in Christmas and New Year Holidays:

+1 Reply
Very helpful! Thanks a lot!
What do you think about my analysis:
+1 Reply
MrRenev VasilyTrader
@VasilyTrader, 4:20 :D
+6 Reply
yet another simple recipe for a money making machine? this time it definitely works and there is no catch at all. anyone can become a millionaire. just follow the buy/sell rules. simple as that. thanks for that and a happy and healthy and prosperous new year!
Price structure 🙏
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