Saturday, November 26, 2016

RSI Trading

If ADX trend intensity is decreasing we are never in a TTIP/TTIP mode, and in such a condition we never start a trend trade/investment setup.

When and while trendintensity is decreasing we might however provide RSI setups.

If we do, these are the rules of engagement.

Short RSI Trading

If we get an RSI(4) value above 75 then buy Short(s) upon a downward cross of RSI(4) of 70. ISloss will be at or just above the nearest resistance level. Sell Short(s) at ISloss if trade goes wrong. Sell Short(s) at or below RSI(4) 50 value or at any satisfactory profitlevel.

Long RSI Trading

If we get an RSI(4) value below 25 then buy Long(s) upon an upward cross of RSI(4) of 30. ISloss will be at or just below the nearest support level. Sell Long(s) at ISloss if trade goes wrong. Sell Long(s) at or above RSI(4) 50 value or at any satisfactory profitlevel.

For an explanation of the abbreviations and the Trend Trade & Investment Principle see the bottom of this blog. Please also read the disclaimer there.