RSI Kijun-sen Forex Trading System And Strategy

FREE DOWNLOAD RSI Kijun-sen Forex Trading System And Strategy – Hello all. I’m back for the second time to bring you another trading method of mine, also taken from my Ichimoku trading series.

This is actually the third of the 3 part series. Please feel free to ask questions, give your opinions and make any suggestions.

 

RSI Kijun-sen Forex Trading System And Strategy

Hopefully I will have more to submit in the future. My main purpose is to help other newbies (like myself) find their path in the FX world!! So, with that being said i would like to present to you…”Next Stop”!

I’m looking forward to hearing your comments!! 🙂

 

Indicators:

  • Kijun-sen (52, shift 3)
  • Tenkan-sen (9, shift 0) Daily Chart Only for possible daily pullback level
  • RSI (26)
  • Trend lines (S/R Levels)

 

Timeframes Used:

  • Daily (Recognize General Trend)
  • 4 Hour (Get S/R Levels, Kijun-sen Level & Intraday Trend)
  • 1 Hour (Entry/Trade Management)

 

Daily Chart (General Trend):

  • Mark the previous day’s high/low price
  • If Tenkan-sen is above Kijun-sen and price is above both lines the market is in an uptrend
  • If Tenkan-sen is below Kijun-sen and price is below both lines the market is in a downtrend
  • If price is between Tenkan-sen and Kijun-sen the market is undecided

4 Hour Chart (Support and Resistance Levels):

  • Mark all major and minor support and resistance levels from this timeframe
  • If price is above 4 Hour Kijun-sen look for long entries, if price is below 4 Hour Kijun-sen look for short entries

1 Hour Chart (Entry & Trade Management):


Go LONG

  • When price crosses Kijun-sen from below, closes above it and RSI is above 50.
  • When price comes down, tests and rejects Kijun-sen from above and RSI is above 50.
  • When price tests, rejects and forms a pin bar at a support level.
  • Solar Wind Joy GREEN

Go SHORT

  • When price crosses Kijun-sen from above, closes below it and RSI is below 50.
  • When price moves up, tests and rejects Kijun-sen from below and RSI is below 50.
  • When price tests, rejects and forms a pin bar at a resistance level.
  • Solar Wind Joy RED
  • Pin bar = hammer, hanging man, inverted hammer, shooting star and doji

 

Exit Strategy:

  • Exit when price crosses Kijun-sen in the opposite direction.
  • Exit when profit target is hit.
  • Exit when stop loss is hit.
  • Exit when trailing stop is hit.

 
 

RSI Kijun-sen Forex Trading  Risk Management

 
Option #1 (My personal favorite):

  • Place a 40 pip stop loss
  • Place a 60 pip trailing stop
  • Move stop to breakeven plus spread after price moves +40 pips
  • Pullback Entries (Add 34 EMA Median)
  • When price pulls back, tests, rejects and closes in the direction of the trend and RSI is above 50 then it is a valid scale-in/add-on entry
  • 1st position should have a 40 pip stop loss, 120 pip target and 60 pip trailing stop
  • All other positions should have a 40 pip stop loss, 80 pip target and 40 pip trailing stop

Option #2 (recommended for newbies):

  • Place a 40 pip stop loss
  • Place an 80-120 pip profit target (2:1 to 3:1 reward to risk ratio)
  • Place a 60 pip trailing stop
  • Move stop to breakeven plus spread after price moves +40 pips

Option #3:

  • Place two (2) half-sized positions
  • Place a 40 pip stop loss on both positions
  • Place an 80 pip profit target and 60 pip trailing stop on the first position
  • Place an 80 pip trailing stop on the second position

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