[B]USD/JPY
30-Minute Interval
Dates Tested: 12/26/2002-6/21/2010
Total Variations Tested: 450+
Total Time Dedicated to Testing: 1 hour
**Note: Specific numbers are displayed in the attachment[/B]
The windows from 3:30PM CST and 5:00PM CST usually offer great buying opportunities. This is because these are the hours directly before the Tokyo open and right at the U.S session close.
Conditions:
Between 3:30PM and 5:00PM CST (Central Standard Time)
If the RSI (period = 6) is less than 50
AND
The 4-SMA has been moving lower
THEN
70% of the time the 1st-9th bars afterward have moved higher than the occurrence bar by a decent amount of pips.
This usually occurs once a week. I know you’re all staring at the EURUSD chart, but just flip over to the USDJPY every now and then between 3:30pm and 5pm CST. If the RSI is below 50, buy and hold for about 2 or 3 hours. The lower the RSI, the better. 30-40 is ideal. The Risk:Reward ratio is also focused on the reward. Win you win, you win more than you lose when you lose.
Anyways, sorry if that sounds more complex than it is. Just remember to flip the chart and check the RSI around that time.
Note: I am not stating Indicators should be used as a golden rule by any means. All I’m stating is that after this has occurred in this time frame, the market has moved higher 70-75% of the time.