RSI & Stochastic profitable system
We use 1h GBP/JPY chart here. And Stochastic Oscillator (5, 3, 3) and RSI (7) are used for indicators to define where a breakout is happening.
1. SELL when RSI and Stochastic are overbought (75) or close to that line, and we have negative candle (black or red filled) closed below the middle of the last positive candle (clear or blue filled).
2. BUY when RSI and Stochastic are oversold (25) or close to that line, and we have positive candle (clear or blue filled) closed above the middle of the last negative candle (black or red filled).
3. If you are in a SELL trade, exit when the condition which meet for BUY trade and enter a new trade.
Stop loss can be put at -100pips.
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There are many factors that affect exchange rates of currencies. However some are more important in currency trading than others. These are; Interest and Inflation rates, Trade balance, Currency market speculation, Foreign investment and Central bank market intervention. Learn how to use these factors in your forex tra ...
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