This is very simple trading strategy of RSI with the help of candlestick. For following this strategy you need to learn about reversible candle. Click here to know about candlestick
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1) RSI. click here to know, how to set RSI
How to get buy signal
First RSI needs to cross 30 level from lower to upper. At the same time, bullish reversible candle need to be formed for confirmation of the buy signal. Pin bar can be preferable as good reversal candle.
Check the chart example of below picture, on first buy setup, RSI was above 30 level and pin bar was formed at the time. So it was good buy setup. We can see that after buy entry price moved 220 pips. So with simple buy setup trader would get 220 pips profit.
On the second buy setup, RSI crossed 30 level and bullish engulfing pattern was formed. This was another perfect buy setup according to this simple RSI strategy. Traders also would get 200+ pips from this strategy.
How to get Sell signal
First RSI needs to cross 70 level from upper to lower. At the same time, bearish reversible candle need to be formed for confirmation of the sell signal. Pin bar can be preferable as good reversal candle.
Check the chart example of below picture, on sell setup, RSI crossed 70 and at the same time, bearish candle was formed. So this was good sell setup.
Preferred Time frame: H4 is preferable. M30 and H1 for scalping.
Currency pairs: All pairs.
Take profit and Stop loss:Take profit should be based on time frame. Minimum take profit 30 pips, you can target 50-200 pips profit.
Stop loss need to be placed above swing high for sell signal and below swing low for buy signal.
Risk warning: You need to avoid ranging market during following this strategy. You have to follow money management theory for following this trendy strategy. Before using this strategy, you need to practice this on demo account.