RVI and Momentum indicator works same to identify the market trend. Momentum indicator cross 100 level, RVI cross 0.0 level to give idea about new trend. So both indicators provides new trend for this strategy. This strategy helps to new traders to find trend direction easily and make profit from this profitable strategy.
1. RVI Click here for RVI setup process
2. Momentum indicator Click here for Momentum indicator setup process with basic strategy
Buy Entry Setup Rules:
✔First wait for new uptrend market.
✔RVI indicator needs to cross 0.0 level from lower to upper portion.
✔Now you need to look at momentum indicator which needs to cross 100 level from lower to upper.
✔After RVI & momentum indicator confirmation, need bullish candle.
✔If above conditions fulfills, then place buy entry after closing bullish candle.
Sell Entry Setup Rules:
✔First wait for new downtrend market.
✔RVI indicator needs to cross 0.0 level from upper to lower portion.
✔Now you need to look at momentum indicator which needs to cross 100 level from upper to lower.
✔After RVI & momentum indicator confirmation, need bearish candle.
✔If above conditions fulfills, then place sell entry after closing bearish candle.
Example of Buy & Sell Setup:
In the above EURUSD h4 chart, we can see three setups, all were profitable. So if you can follow the rules of this strategy, then you can gain from this strategy.
H1, H4 is best for day trading. For scalping, M15, M30 is preferable.
All trendy pair.
Take profit and stop loss:
Take profit will depend on what time frame you will trade. You can set TP from 30-200 pips according to the time frame,
Stop loss can be set as 30-60 pips. You can set Stop loss on swing high or low
This strategy works well in the trendy market not in ranging area. So use proper money management during using this strategy on demo and live account.
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