For the past week I have been using a pretty simple scalping strategy which so far has been successful. I use the 1 min and 5 min time frames and the only indicator I use is RSI periods 3, levels 90 (overbought) and 10 (oversold). I would also look for S/R levels and observe price action and the shape of closing candlesticks. I trade only the quiet hours for this strategy 7pm-1am eastern and 1pm-5pm eastern. So what I basicaly do is wait untill RSI hits the 90 level and place a sell order or buy at the 10 level. I exit the trade when RSI hits the 50 level. Of course there is a lot of feel of whether to enter a trade at these levels or not because sometimes it might go beyond them but for the most part it would reverse. For example if I see RSI to hit the 90 level but i see a strong bullish trend with long candlesticks or an S/R level which would be beyond the 90 level of RSI, I would wait untill it hits the S/R and then go short.
I have been using this strategy only for a week with about 30 trades made and I have about 70% success. It’s still in the testing stage and I have no idea if it will continue to give me those results or if it has just been a lucky week. Tell me guys what you think about it and try if for yourself if you are interested and share your results so we can determine if it is a good strategy or not.
