RSI and Stochastic Trading System is simply the best and lest complicated trend following Forex trading strategy among top trading systems. It has been designed with the combination of best Forex indicators like RSI and Stochastic Oscillators. This system has been back tested and it has been proven that it produces Forex trading signals with better accuracy and steady trading results.
RSI and Stochastic Trading System is very much suitable for newbie traders for its simplicity of use and understandings. You’ll be able to use it at any Forex currency pair window. Besides, as it fits with all king of timeframe charts, traders of all kinds can be benefited from this amazing Forex trading strategy.
RSI and Stochastic Trading System Overview
| Time Frame | Currency Pairs | Indicator Factors | Ratings |
| Any | Any | 2 | 9.7/10 |
RSI and Stochastic Trading System Anatomy
- RSI: A well known widely accepted Forex trading indicator which is known as Relative Strength Index. It is basically a trend based indicator. Its parameter near 30 signals the oversold condition and near 70 signals the overbought condition of the market. It’s value over 50 signals the bullish strength and below 50 indicates the bearish thrust of the market trend.
- Stochastic Oscillator: It is another very much popular Forex trading indicator among the professional traders. It is a momentum based indicator. Its value at 20 means the oversold condition and at 80 signals the overbought condition of the market momentum. Its parameter over 50 states the presence of bullish momentum and a value below 50 represents the bearish momentum of the current market.
Similar Trading Strategy: Forex RSI MA Trading Strategy
RSI and Stochastic Trading System: Buy Parameters
- The signaling bar closes as a bullish candle
- RSI turns above from its 30 level
- Stochastic Oscillator bounces to upwards from the 20 level
- Hold your long positions when both RSI and Stochastic Oscillator maintains their levels above the 50 parameters
- Set stop loss limit below the respective signaling bar’s low
- Exit long positions whenever both RSI and Stochastic Oscillator turns downwards from the overbought condition levels at the same time
RSI and Stochastic Trading System: Sell Parameters
- The signaling bar closes as a bearish candle
- RSI turns below from its 70 level
- Stochastic Oscillator bounces to downwards from the 80 level
- Hold your short positions when both RSI and Stochastic Oscillator maintains their levels below the 50 parameters
- Set stop loss limit above the respective signaling bar’s high
- Exit short positions whenever both RSI and Stochastic Oscillator turns upwards from the oversold condition levels at the same time
