So I got turned onto this by @dpaterso. Giving it a go since it’s easy and I need something easy to get me started and motivated to keep coming back.
Dale shared me a book by Kathy Lien and Boris Schlossberg called High Probability Setups for the Currency market. It’s here if your interested.
Rules for a Long Trade straight from the text
- RSI reading must be less than 30.
- Wait for an up candle to form and close with an RSI reading greater than 30.
- Go long at market on the open of the next candle.
- Place your stop at the swing low.
- Exit half of the position at 50% of the risk and immediately move the stop on the rest
- Exit the rest of the position when one or the other following condition is met:
a. Stopped at breakeven
b. Trade first moves into overbought territory marked by RSI readings of greater than 70
and then eventually drops from that zone. As soon as RSI declines below 70, sell at market
on the close of that candle.
So let’s see where this takes me. I’m looking at pairs right now, so let’s see if I find anything. I’ll report back what I find, and what I’m watching, and also what trades I take and how they go.
I’d say I’m just going to watch a single pair, but then since I’m trading on the daily, that might turn into a waiting game. So maybe I’ll follow a couple pairs for more opportunities. My first journal, so if you have any tips, criticism, laughs, jokes, whatever, I’m game. Wish me luck!