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Pyschological

Trade USDBRO like a pro with RSI/MACD Strategy Above was forecast for oils movement to retest 65. The forecast was spot on and was done so by correlating RSI and MACD playouts while mapping the key support zones. This will be a detailed explanation of this simple strategy. I am heavily relying on this strategy as the market has been all over the place and creating roadblocks for traders. To start I confirmed a pivot in play with confirmed support from 61 off the initial pivot just above 60 range that retested 64.50 range. We can see a wick retest at 61 followed by a breakout bar closing above 62. This creates our second leg to further confirm the trend will continue. This is simple price action without using indicators. The indicators come in play as entry and exit sentiment. 50 line serves as the make to break line. We can see that our break out bar above 62 triggers our RSI breakthrough 50. The most important aspect of using RSI 50 line for entries and exits is to expect a short pullback after we see a breach. If the pullback occurs we can now observe our MACD playout. While RSI just breaches 50 from the breakout bar above 62 our MACD/SIGNAL lines have crossed crossed and already heading towards the 0 line. We can see a two hour weak pull back that barley sends RSI below 50. The 3rd bar is the most important as this will determine our continuation. The playout is decent bullish bar that sends the RSI back over 50. I presented the ideal entry on the chart. This low volume bullish bar further corrects RSI to move sideways away from 50 while MACD/SIGNAL are making sideways cross through 0 line. Across the board we have full confirmation the trend will continue to retest our key Resistance zone of 65. Seldom does oil trade against this strategy however there are a few scenarios that may throw off a beginner using this strategy. If RSI is just above or below 50 after a seemingly correction but MACD/SIGNAL line have not made a full cross an entry should not be made as a divergence is most likely in play and/or a consolidation period may begin. One may think this is a great scalping opportunity with this strategy but it is not. I know this from trial and error so please take my word. Another fake out scenario using this strategy is assuming that RSI will cross 50 with the next bar playout after a breakout bar causes RSI to touch or nearly touch 50. Often sharp pullback occurs that will send a trader into negative. The psychological factor using this strategy is simply to be patient. Below is a summary of the points of the strategy specifically for oil (RSI 50 make/break playouts across pairs are similar however some have established RSI trend pivots) -Map out key supports/resistance using the day and 1hr chart to establish pivots and daily high/lows as well as your trend direction -Observe RSI. If you establish over trend is going up you should see RSI trying to make and break through 50. -Make sure MACD/SIGNAL lines have crossed while RSI is attempting to break through 50 -Be patient after initial RSI 50 break for pullback. If trend sentiment is true expect the pullback to retouch 50 or slightly below and wait for the break out bar to correct RSI and confirm an entry point. - If MACD/SIGNAL initiate cross through zero line while following our bar close out after breakout bar to complete RSI correction we can place our entry. -Exit is simple for this pair as our current RSI high resistance is 77. If trend is close to target while RSI fails to breach 77 the MACD histogram bins will lose volume ultimately confirming our exit. In conclusion this basic strategy can be used by all traders with maximum success and can be used for any pairs. Learn your key supports/resistance levels, study RSI/MACD patterns for your pairs and practice, practice, practice. Please comment with thoughts, questions, and ideas. Thank you. P.S I will present the scalping strategy with a different currency pair.
FX_IDC:USDBROLong
by Pika7993