RSI Reversal Candlestick Trading Strategy is a combination of Metatrader 4 (MT4) indicators and template. The essence of this forex technical analysis strategy is to transform the accumulated history data and trading signals.
- Parabolic SAR, default settings.
- 5 LWMA (close price); this is the signal line.
- Add 20 LWMA (close price).
- Moreover, add RSI (5); add levels 10, 20, 70, 80.
- Candlestick Pattern
This trading strategy provides an opportunity to detect various peculiarities and patterns in price dynamics invisible to the naked eye. Based on this information, traders can assume further price movement and adjust this technical analysis strategy accordingly.
Timeframe: 15 min and above
Currency Pair: any
How to trade with RSI Reversal Candlestick Trading Strategy?
Two conditions to enter:
1) As a general rule, enter a trade when RSI meets the following condition:
- 70 and 80, but preferably above 80, if going short.
- 20 and 10 but preferably below 10 when going long.
2) Later on, look at the candles pattern and enter the trade if you see any trend reversal pattern.
Note: Enter if both 1 and 2 conditions are present at the same time.
- Refer 5 and 20 LWMA and parabolic SAR to exit positions.
- There are 3 indicators for a bit more accurate targeting that can be used for short entry/exit: 5 and 20 LWMA and parabolic SAR.
- After you open a trade, you should look for either 5 OR 20 LWMA line, whichever is first (usually, 20 MA is your first target, but there are situations when SAR is between these 2 MAs.
- The next target after 5 and 20 MAs cross is parabolic SAR
- (but sometimes 20 LWMA).
How to download and install an indicator?
In order to install the indicator on your MT4 platform, you need to follow these steps:
- Click on the “Download Indicator” button located at the bottom of the post.
- Save the file to your computer.
- Extract and move the files into the MT4>Indicator folder of the MetaTrader4 software file directory.
- Restart your Metatrader platform.
- Navigate to “Indicators.”
- And select the “RSI Reversal Candlestick Trading Strategy” template to apply it on the chart.
Note: T. Morris developed this indicator. AtoZ Markets does not carry any copyrights over this trading tool.