This indicates the market trend is increasing in strength, and is seen as a bullish signal until the RSI approaches the 70 line. A movement from above the centerline 50 to below indicates a falling trend. This indicates the market trend is weakening in strength, and is seen as a bearish signal until the RSI approaches the 30 line. RSI can be used just like the Stochastic indicator.
We can use it to pick potential tops and bottoms depending on whether the market is overbought or oversold. On June 7, it was already trading below the 1. We are dedicated to help you find a solution to your trading problems Get Access today! We know you have been tuning into our special Simple SAR Sale i'm sure some of you might be tired of hearing about it but we truly believe this is one of the best indicators you will find on the Marketplace..
The strategy in detail
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Here is actually a live look at the Meta Trader 4 Version:. The indicator triggered this and showed two great buy entries!
One from the previous break of the channel and the second on the current breakout of this channel that was plotted for you. It is as simple as that! What the indicator allows you to do is manually draw a channel. Once you click that button you can draw the channel anywhere on the chart! This Three Part Training Course is designed to dramatically boost profits immediately - and it's only available for enrollment this weekend, Hello fellow trader,.
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Connors RSI Strategy - Tradestation and Multicharts - EasyLanguage
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Reader Interactions
Thanks Guys! I am grateful for your Trading strategy guides RSI divergence strategy. It is a no holy grail but coupled with a sensible money management and understanding of price action, it definitely indicates the picks and troughs of the rhythm of the market. My advise is, even when there is a confirmed divergence between RSI and price, buy signals in an uptrend and sell in a downtrend. Thanks for educating us. God bless. Would like an indicator that doesn't lag with high reliability with in terms of generating entry signals with minimal false positives.
I personally enjoy Simple graphical type indicators like arrows and bars changing colors to tell me which way to take my next trade. Thank you. What I look forward to seeing on an indicator is one that would be able to help me avoid chop, Most indicators are able to get one into or out of trade but are just dumb when it come to market chop. So my ideal indicator would be able to give me warning of the beginnings of a chop. Interesting strategy. Have used RSI to verify what price action is telling me, but not with 50 period low or high.
Fakeouts are a big problem. I'll try this strategy. The most important feature for me would be to get consistent results under all market conditions, i. In this way we are able to begin the analysis and wait for proper entry in advance. On your question about the unique feature I'd love to see in an indicator, what I'd love to see in an indication is an additional feature to auto-trade, i. You only have to set lot size and put it on auto trade.
This way, it can enter the trade and then send you an alert of trade entry, and you can then look at it and set your stop loss, trailing stop and take profit levels. Alternatively you can indicate take profit and stop loss levels in terms of percentage or pips as well as the lot size lot. This will really be cool.
I want an indicator to be consistent. Once an indicator fails to be reliable, it is doomed for me. But if it is reliable, I trust it and it becomes a valuable asset. Much gratitude for this beautifully simple and straightforward reversal strategy, very clear and easy to follow explanation from start to finish I have been using a similar rsi divergence strategy, The EFC indicator you have created looks very interesting.
Finally, some divergent patterns are more stronger than others, so maybe an indication of the divergence strengh, especially if the upper timeframes are in divergence. Again, the EFC indicator looks very promising, just shared my thought of it could be even greater for my personal use.
RSI Trading Strategy: The RSI 80-20 Rule
Thanks for the good work. It can weigh up all the factors and give a suggested probability rating so the trading can decide on his own whether or not to be conservative. I have 2 suggestions for indicators, the first would be an addition to EFC of coloured box which measures back 50 periods and set to max min price for that 50 period rather like price channel does although not chopping around like price channel , that box could then indicate a potential breakout of price action with the aid of a spot or arrow or change of bar colour. I also like the idea of keeping non essential bars of neutral colour.
I think the main indicator i would to have available for MT4 is market profile based on volume showing the POC and min max of key price area. Watched a wonderful demonstration of this yesterday in a webinar but it is not designed for MT4. Thank you, Tony.
It will show me very clear where my destination is. For good and sharp entry, i need a firm and precise momentum indicator. Combination both of these will definately give me a very good trading strategy.
For RSI, i rely on this setup:. It seem this system have both of it. And been translated into much more easier and friendly way for any type of trader. It just that as an additional, these system need to be equipment with any other supporting trend indicator in order to identify the market is trending or ranging.. As for myself i use MA Channel to support this trading system. I like this strategy just what I have been looking for thanks very much for your hard work.
Best Regards Graham. RSI is a simple indicator. With your trading strategy, it will be good to develop the system rather than manually plotting and looking at the conditions. I think you have a great informative site, so keep up the good work but the proof is always in the pudding. Ok - I jumped in and bought the indicator - it looks just like the example below.