The fact is, it is not honestly easy to make money at the end of a year through using this trading set up or the other ones, because as I said already, it is impossible for a trader to predict every next action of the market. The reasons behind this saying, would be “no one had 100 % wining trades in such a market” and the other reason that I personally refer to when I think I’m OK enough in trading is “when I see the huge currency market screen on my laptop, I really see nothing while the real huge market is hidden behind the screen and you don’t actually know what’s going to happen next with unexpected Iraqi, Iranian, Chinese or Mexican gulf storms cases next”. So all I am trying to emphasize is not forget to that a real trader must know as much as he/she can from all market movers first and always has an eye on possibilities that could easily turn to a nightmare. Those possibilities often come up with a 300 pips bar or a scary gap just against your technically approved trade.
Well, whether you have a magic expert indicator or not, with no doubt you must combine at least two different ways or indicators to produce a signal which is reliable for both trendy and range market situations. Briefly I show you how and which ones I prefer to use.
How to Draw the RSI trend line?
You simply have to connect at least two turn points of RSI value line which can interpret into drawing a line which connect the last value line top (the last value line Top is the one that formed much closer to your current signal than the others and match better to correction on the price chart) to next line top with is normally lower than the first top in a short trade and higher than the first top in a Long trade.
The Top of RSI value line is the hump that formed because of a correction (Fibo ratios for correctional pullbacks), so try to filter the useless RSI Tops with the real chart formation as you may get it wrong when a hump has formed on the RSI while there is no correction on the price chart.
Also, if you realized that you actually took the wrong Top for the trade and you already entered the market, please and for god sake, exit the trade and open another one on the true direction of the market.
There is something you need to pay attention, too. Therefore, stay with me!
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