RSI Scalping Forex Trading Strategy


You can now download the RSI Scalping Forex Trading Strategy for free on AtoZ Markets indicators gallery.

The oscillating indicator we will be looking at will be the Relative Strength Indicator (RSI). Normally, traders use it to determine overextended prices.

If the RSI is above 70, the market is said to be overbought. If it is below 30, then the market is said to be oversold. But I find that this is not the only way to look at RSI.

Instead, in a bullish bias market, we will be looking first for RSI to drop, before it continues its bullish trend.

Since this is a scalping strategy, we will be using the 1-minute chart exclusively. For those who are not yet adept to quick trading, you may use the 5-minute chart, however, that would already border more towards a day trade type of time frame.

Try this scalping strategy with a reputable broker on a free account:

Multibank
4.9/5
Multibank Review
Visit Site
Capital.com
4.8/5
Capital.com Review
Visit Site
xm.com
4.8/5
xm.com Review
Visit Site

There will be advantages and disadvantages for both timeframes though. The 1-minute chart will have more noise, but personally, I find it easier to predict due to the short span of time I hold the trade on this timeframe. The 5-minute chart will have less noise, but I find that many things could happen that could reverse the market sentiment during the span of time I hold trades on the 5-minute chart.

How to trade with RSI Scalping Forex Trading Strategy?

Buy Entry:

  • Price should be above the 200 EMA (green moving average)
  • The RSI should go below 40 but not go below 25
  • Wait for the RSI to go back above 40
  • Enter at the close of the candle corresponding to when the RSI crosses above 40

Stop Loss: Set the stop loss at the swing low generated by the bullish price thrust

Take Profit: Set the take profit at 2x the risk on the stop loss

Sell Entry:

  • Price should be below the 200 EMA (green moving average)
  • The RSI should go above 60 but not go above 75
  • Wait for the RSI to go back below 60
  • Enter at the close of the candle corresponding to when the RSI crosses below 60

Stop Loss: Set the stop loss at the swing high generated by the bearish price thrust

Take Profit: Set the take profit at 2x the risk on the stop loss

How to download and install an indicator?

In order to install the indicator on your MT4 platform, you need to follow these steps:

  1. Click on the “Download Indicator” button located at the bottom of the screen.
  2. Save the file to your computer.
  3. Extract and move the files into the MT4>Indicator folder of the MetaTrader4 software file directory.
  4. Restart your Metatrader platform.
  5. Navigate to “Indicators.”
  6. And select the “RSI Scalping Forex Trading Strategy” template to apply it on the chart.

Note: This indicator was developed by T. Morris. AtoZ Markets does not carry any copyrights over this trading tool.

Should you trade Forex on your own at all?

Before you start trading forex, you'll want to read this.

Our in-house trading expert Dr Yury Safronau, PhD in Economic Sciences, gives you daily his best forex, metals, and cryptocurrencies to buy and sell right now.

His trading strategies which are based on non-linear dynamic models have achieved more than 65000 pips of profits since 2015. And right now there are some very strong buy and sell signals across several markets you don't want to miss.

Want to see which ones?

  1. frolpwecerit says:

    Very great post. I simply stumbled upon your blog and wanted to say that I've truly enjoyed surfing around your weblog posts. After all I’ll be subscribing for your feed and I hope you write again very soon!

    Reply
  2. zortilonrel says:

    I’ve been exploring for a little for any high-quality articles or blog posts in this sort of space . Exploring in Yahoo I ultimately stumbled upon this website. Studying this information So i’m happy to convey that I've an incredibly just right uncanny feeling I came upon exactly what I needed. I so much surely will make sure to don’t omit this website and provides it a look on a continuing basis.

    Reply
  3. Sabianus Opondo says:

    Nice indicator

    Reply

Leave a Reply

Your email address will not be published. Required fields are marked *