Good Day everyone,
Today I am going to share with you my results and some of my setups. It was a quite profitable day (about +90$ Net Profit) and a 4/5 ITM performance. Not much money because of some silly mistakes but profit is profit. Look at my results.
In these trades I used RSI with some changes from my last articles, RSI trendlines and Price Action. The -37 Euro Loss came without reason, I took a trade without evidence and clues, just from my greedy, and of course was OTM. Let’s go to the first screen shot. It’s from the EURUSD currency pair and I traded in London session.
First of all I want to say that I made some small changes to my RSI, the period is now 3 instead of 8(in close) , the overbought zone is 92 instead of 70 and last the oversold zone is 8 instead of 30. My first trade was a put, a little bit risky because was against the mini- up trend. The highest red line in my chart was a strong resistance from the previous day that the price didn’t break. Moreover, our 3 period RSI was overbought and break the trend line I drew (higher- lows, mini-uptrend).The trade was ITM. The third indicator which I have in my chart is a 64 period CCI which helps me to identify the momentum. Above zero bullish (blue color) and below zero bearish (brown color). Notice that now I have a 5min chart ,not a 1min chart.
In my second trade I took a call in the call arrow. The red line is a recent support. Loot at the price behavior. After the reversal in which I took my first trade the price is moving down. Finally hit the 61.8 fib level and you can easily see that we have a very strong rejection here and the candle finally close in the 38.2 fib level. Furthermore the 3 period RSI is now oversold and breaks the trend line I drew (lower-highs, mini- down trend). Notice that our CCI ,when I take the call, is still bullish.
This is another ITM setup from USDJPY currency pair same to the previous. The 3 period RSI is oversold, RSI’s trend line is broken and we have also a support. You can use RSI with solid results but never ignore the price action and be careful to not trade against the general trend because the oversold/overbought conditions many times don’t work perfectly if you trade against a strong trend. Sometimes the RSI goes sideways in OB/OS areas. For finding the best entry you could use an oscillator like stochastic or you could analyze a smaller TF like the 1min chart.