This is a basic RVI trading strategy. This strategy can be used in short time for scalping purpose. Beginners can follow this simple forex strategy. You can get reverse signal of the market from this strategy. So you can gain a lot of pips from it. This strategy also can be used for trend changing.
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RVI. see how to set RVI indicatior.
How to get buy signal
You have to find buy signal when RVI indicator stays at low level. When a crossover occurs at the low level like as below image, then you can buy. After crossover you can wait for a bullish candle for confirmation of your buy entry. You can take another buy entry when RVI indicator crosses 0.0 level from lower to upper.
How to get Sell signal
You have to find sell signal when RVI indicator stays at higher high. When a crossover occurs at the top level like as below image, then you can sell. After crossover you can wait for a bearish candle for confirmation of your sell entry. You can take sell entry when RVI indicator crosses 0.0 level from upper to lower.
Time frame: Any time frame. H1, H4 are recommended.
Currency pairs: Any pairs.
Take profit and Stop loss: Take profit will depend in which time frame you will trade. You have set short take profit for scalping trading purpose. If you trade on H1 or H4, you can set take profit 50-70 pips.
You need to set stop below the swing low for buy entry and above the swing high for the sell entry. You can also set 30-40 pips stop loss for every entry
Risk warning: This strategy is made on only one indicator. So you have to wait for candle confirmation for safety trading. You can’t trade on ranging market with this strategy. In news time, you should not use this strategy. You also need to trade on this strategy with your own risk. You have to follow money management. From this strategy, you need to take 1-2% risk only for every trade. Though this is simple trading system, you need test this on demo account. If you are fully satisfied with this strategy, then you can follow it on real account.