SIMPLE RSI INTRADAY STRATEGY FOR EURUSD

 SIMPLE RSI INTRADAY STRATEGY FOR EURUSD

How to apply the indicator

The RSI-6 Strategy is one of the most straightforward Forex strategies. It considers price hikes that any currency pair experiences at least once a day. The intersection of the major trading sessions, European and American, triggers entry and exit points.

Indicators settings

Bollinger Bands standard settings, ‘20, 2’

RSI ‘period 6, levels 20 and 80’. 

Timeframe

5 minutes

15 minutes.

How to understand RSI movement

20 and 80 show oversold and overbought zones, respectively

In a downtrend, the RSI always falls to 20. In an uptrend, it always rises to 80 

When the RSI exits the oversold zone, it is a BUY signal

When the indicator leaves the overbought zone, it’s a SELL signal

Ignore the signals that go against the trend. A trend change always occurs after passing a particular level. 

Important points

Always trade within the trend. The trend direction is chosen upon the path of the price (above) and its comparison with the RSI (below). If the RSI does not match the price on the chart, the trend may reverse, and it is not safe to trade

If the RSI crosses the 80 line from top to bottom, then the asset is overbought, and the price will decline

Contrarily, when an asset is oversold, we can expect it to grow again in the near future. Pay attention to the RSI crossing line 20 from the bottom up. When this happens, consider it a trigger for purchase.

For your convenience, you can test the strategy in our demo account first.

Please note: This is not a direct instruction on which order to open. Remember, when applying this strategy, you remain solely responsible for the financial risks.

Will you use this strategy?

YES

NO

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