RSI Channel Forex Trading Signals and System – The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30. Signals can be generated by looking for divergences and failure swings. RSI can also be used to identify the general trend.
The RSI is classified as a momentum oscillator, measuring the velocity and magnitude of directional price movements.
Momentum is the rate of the rise or fall in price.
The RSI computes momentum as the ratio of higher closes to lower closes: stocks which have had more or stronger positive changes have a higher RSI than stocks which have had more or stronger negative changes.
The RSI is most typically used on a 14-day timeframe, measured on a scale from 0 to 100, with high and low levels marked at 70 and 30, respectively. Shorter or longer timeframes are used for alternately shorter or longer outlooks. More extreme high and low levels—80 and 20, or 90 and 10—occur less frequently but indicate stronger momentum.
RSI Channel Forex Trading Rules
RSI Channel Forex Trading signals and System is an simple strategy based on the moving averages and rsi channel indicator. This is a swing strategy but but a quick profit goal.
- Best Time frame : 30 min or higher.
- Financial markets: any.
- RSI Channel (RSI Channel by Madlen):
- MACD Filter
- Nihilist Holygrail Dash
- Exponential moving average 50 smoothed, close;
- Exponential moving average 21 smoothed, close;
- Exponential moving average 8 smoothed, close.
- RSI Channel BUY signal arrows confirmed by M8>M21>M50; M21>50
- MACD Filter Green and above 0 line
- Nihilist Holygrail Dash blue
- RSI Channel SELL signal arrows confirmed by M8<M21<M50; M21<50
- MACD Filter Red and below 0 line
- Nihilist Holygrail Dash red
Trading Note: Only Trade With Risk Capital
Trading currencies involves taking substantial risks, no matter how you look at it. Because of the free-floating currency market, currency trading has considerably more in common to gambling than investing.
As a result, putting funds at risk which you cannot afford to lose should never even be considered by a responsible forex trader. This includes money needed for key housing expenses such as your mortgage or rent payment, or the weekly food allowance necessary for your or your family’s sustenance.
In general, traders do better by only trading forex with funds known as risk capital. Such money has been specifically designated for trading because it is expendable and therefore not needed for the basic essentials of living.