Do you trade Forex with bad results? You may have tried to use automated trading systems, EA or other types of trading tools like trend lines, chart patterns, Elliott Wave, Fibonacci, even moving averages and prices, but nothing seems to work. Many traders make the common mistake when they go to “Home Depot on Forex” and learn how all the tools work, but they never learn to use the tools to trade successfully.
I made that mistake early in my trading career by spending more than $ 5,000 to basically learn the basics of Forex. When I finished, I still didn’t know how to trade. Finally, after a long search of the soul and thinking about what is really important in Forex, I started to build a system based on these factors. I started with a pulse oscillator called RSI, the relative power index.
The RSI is perhaps the most commonly used indicator by retailers around the world to determine if a price has been overbought or resold. Ironically, overbought and oversold cannot be measured using indicators. Even more ironic divergences that are also advertised as important trading signals for RSI are wrong. Divergences do not create turning points, they signal retracement points with the exception of one situation, when the RSI is in the positive range and the momentum leads it to the negative RSI range.
Once a trader knows those two things about RSI, the door will open to see trading what it is. There are 5 things that make RSI trading an independent trading system. If you know these things, you will make money on Forex. Understand and find positive and negative reversal signals, understand RSI range, understand RSI range shifts, understand type 1, 2, and 3 moments, and understand levels of predicting trading goals. When you combine this with statistics on when momentum is most likely to occur, you create a circumstance in which trading successfully becomes a high-probability event.
Much can be learned about RSI and the power it has to signal trading.