Overbought/Oversold Zones RSI + Moving Average
Hello everyone!
Today, using a simple but working strategy, we will analyze the GBPUSD.
Technic
It is quite simple to work with the indicator:
1. We are waiting for the price to enter the overbought /oversold zone;
2. We wait for the price to cross the moving average and only then open a position.
History
If you look at the history, you can see how on December 19, 2019, the price entered the overbought zone and the price crossed the moving average from top to bottom.
If you had opened a position at this point, you could have caught a 13% drop.
This movement lasted until the price entered the oversold zone.
And when the price crossed the moving average, it was possible to open a position.
You can close positions the way you want, but if you learn to identify a real reversal, you can catch a good movement.
On March 2, 2021, the indicator again gave a good sell signal.
This movement lasted for a long time and gave a 12% drop.
It was possible to close the position when the indicator gave an ignal to buy.
Now the price is rising, after the indicator gave a signal to grow and so far there has been no signal to sell, which means that the position can be held.
Traders, if you liked this idea or if you have an opinion about it, write in the comments. I will be glad 👩💻
Today, using a simple but working strategy, we will analyze the GBPUSD.
Technic
It is quite simple to work with the indicator:
1. We are waiting for the price to enter the overbought /oversold zone;
2. We wait for the price to cross the moving average and only then open a position.
History
If you look at the history, you can see how on December 19, 2019, the price entered the overbought zone and the price crossed the moving average from top to bottom.
If you had opened a position at this point, you could have caught a 13% drop.
This movement lasted until the price entered the oversold zone.
And when the price crossed the moving average, it was possible to open a position.
You can close positions the way you want, but if you learn to identify a real reversal, you can catch a good movement.
On March 2, 2021, the indicator again gave a good sell signal.
This movement lasted for a long time and gave a 12% drop.
It was possible to close the position when the indicator gave an ignal to buy.
Now the price is rising, after the indicator gave a signal to grow and so far there has been no signal to sell, which means that the position can be held.
Traders, if you liked this idea or if you have an opinion about it, write in the comments. I will be glad 👩💻
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