Ok
(Question attempt #2) @Richard_Able-Trading Please answer this directly: How are you setting the stop and the limit?
Why? What point are you trying to prove? There are of course subjective conditions to all manual strategies. My point is indicators have ‘objective’ conditions.
Your question is irrelevant to the point.
(Question attempt #3) @Richard_Able-Trading Please answer this directly: How are you setting the stop and the limit?
This is a forum where traders come to talk trading.
You pride yourself in your strategy and wanting to help others by answering their questions.
I’m seeking help through asking you direct questions about your strategy.
The point is simple: You’ve stated multiple times that your strategy is built on objectively stacking indicators to increase the “probability” of “hitting your limit before your stop”.
Your strategy is simplified to an equation:
Prob(hitting stop before limit) = (1) Objective stack of indicators + (2) strategic positioning of stop / limit order(s)
(1) No issue
(2) How are you determining where the stop and the limit orders need to be?
The problem is that you’re over-simplifying the mechanics of trading. I can teach a monkey to know that a stochastic reading above x means y, and below t means z. You can’t teach a monkey how to apply discretion around choice of where to set stops and limits.
There is nothing objective about your strategy- it is actually 99% subjective (unless you have evidence to introduce that supports my question that I’ve asked 5 times about setting stops/limits).
The Prob(hitting stop before limit) 100% relies on where the trader places their stop and limit.
Dodge, Duck, Dip, Dive and Dodge!
Also won’t the stop-loss be large. I mean if you do place them close, you might just end up getting stopped quite frequently.
It doesn’t come without a weakness that’s sharp price movements. This can result in it to spike up and down giving false signals.
But if these spikes still show a trading confirmation when you compare it to the other signals, you could still get an entry and exit point.
Aren’t there instances where the price would continue to extend beyond the point where the RSI would indicate whether the market is overbought or oversold?
That’s right. No technical indicator or analysis tell you with certainty about the movement of the market. The forex market is very unpredictable, we should never forget that.
Agreed and that’s the reason I always prefer using RSI with other technical indicators either when I’m swing trading with turnkeyforex or trading 1 minute charts with xtb. Simply not to enter the trade too early
RSI does work so much. Learn how to use just the naked chart
I have tried everything, what I think works best is to determine where the market will rebound and then keep following it.
Right! You can never predict what the next market movement would be. And as all technical indicators show the same information, it is up to you to choose the indicator that you can use easily and understand what it shows, if you want to use them.
I don’t think that it is a good decision to use more than one indicator at a time. You will end up confusing yourself and making wrong decisions.
I don’t think that any indicator is better than the other. And calling any one of the overhyped indicators just because it didn’t work for you is not right. You might need to do some more research and try using it again. It’s a good indicator and it has proved to be so for a lot of traders at different levels.
Yes, that’s true. But before acting on RSI, I prefer getting confirmation from other trading signals because overbought and oversold assets don’t always turn around right away. So, I use moving average crossovers to know the right time to make a trade.
It is all a matter of what works for you and what doesn’t. It would be wrong to call RSI overrated because most of my trading decisions are based on MACD and RSI.
from my exp ,RSI perform best in stock market in spotting reversal .in forex market ,no indicator ever work for me
Does ANY indicator work well in forex, in Your experience?
Don’t use RSI personally, or any indicator in fact.