Rsi is one of the popular indicator for different types of trading strategies. In this strategy, rsi is used to find overbought and oversold condition of the market price. Awesome oscillator is used for making this strategy more profitable and it can filter from false signal. This is an easy strategy to follow. This is also profitable for trend following pairs.
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1) Awesome Oscillator. click here to know, how to set Awesome Oscilltor
2) RSI click here to know, how to set RSI indicator
You may download the full template for this trading strategy from the following link: Download Here
How to setup a Template:
Copy the Template >Open your mt4 terminal > Click files > Click "open data folder"> Click Templates> Paste the Template
How to get buy signal
Rsi needs to cross 30 level from lower to upper. Then we need to wait for appearing green bar in the awesome oscillator indicator. If we see green bar on AO, then we will get buy signal according to this strategy. It is better to take buy entry when a buy candle forms.
Check the chart example of below picture, on first buy setup, candle crossed 30 level of rsi indicator and green bar was appeared on awesome oscillator. This was a buy setup according to this strategy. Second buy setup was same like as first setup.
How to get Sell signal
Sell setup for this strategy is just opposite of buy setup. First rsi needs to cross 70 level from upper to lower. Then we need to wait for appearing red bar in the awesome oscillator indicator. If we see red bar, then we will get sell signal according to this strategy. We need to take sell entry if any sell candle forms.
Check the chart example on above picture, on first sell setup, rsi touches 70 level and started falling. Then red bar was appeared on awesome oscillator. So this is exact sell signal according to this strategy. Traders would get at least 200 pips from this sell setup. Second sell setup was also profitable.
Preferred Time frame: H1 is preferable. M30 for scalping.
Currency pairs: All pairs.
Take profit and Stop loss:Take profit should be based on time frame. Minimum take profit 40 pips, you can target 80-160 pips profit.
Stop loss need to be placed above swing high for sell signal and below swing low for buy signal.
Risk warning: This strategy is not suitable for ranging market. You have to follow money management theory for following this trendy strategy. Before using this strategy on real account, you need to practice this on demo account.