Strategy for the RSI indicator

The main feature of this trading strategy - is trading on pending BuyStop and SellStop orders. In addition, it uses only one RSI indicator, which makes it easy to execute for beginners on .

Marketplace: ;
Currency pairEURUSD;
Market orders: BuyStop and SellStop;
Timeframe: H4;
Indicators : RSI(10) with levels 30, 40, 50, 60, 70;
Strategy: simple;
Protective orders: StopLoss, TrallingStop.

Trading signals strategy for RSI

Installing pending order to purchaseIf the indicator RSI(10) crosses from the bottom up its level of 50, but to do this, you must wait until the close of the candle in which the crossing occurred. BuyStop order you must set at the maximum of the candle, which happened to cross the indicator RSI(10) its line 50 +15 points.

Stop Loss set for the nearest local minimum. In addition, Buy position should be closedIf the RSI indicator has crossed the 50 level in the opposite direction.

As soon as RSI(10) crosses upwards the 60 level, set the second order to add to the position at a distance of 15 points from the candle maximum, where the crossing with the level 60 occurred, but the volume is twice less than the original (first) or equal to the first (more risky option). Stop-loss - also below the local minimum at the moment.

For trading I recommend to use trailing stop at 100 points.

As soon as the RSI(10) crosses the 70 level from top to bottom, all open positions should be closed.

Positions can also be closed after the breakdown of the trend line for RSI indicator(10) - see figure in detail (vertical red dotted lines) - sometimes this crossing gives earlier price reversal signals.

To open and close sales transactions we use the inverse conditions.