Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
Brief Overview:
The 5SMA Indicator is for determining trend so if the price is is above the 5 SMA, it is an
uptrend or downtrend if price is below the 5 SMA.
The RSI is used as a confirmation signal. The RSI is a technical momentum indicator that
compares the magnitude of recent gains to recent losses in an attempt to determine
overbought and oversold conditions. The RSI ranges from 0 to 100.
A currency pair is deemed to be overbought once the RSI approaches the 70 level, meaning
that it may be getting overvalued and is a good candidate for a pullback its time to look for a
sell opportunity.
On the other hand, if RSI approaches 30, it is an indication that the currency pair may be
getting oversold and therefore likely to rally so its time to be looking for a buy opportunity.
Sell Rules:
1. When price crosses over 5 SMA to the downsdie and that candlestick closes, check to make
sure that it is more than + 10 pips down
2. Then check the RSI, it must be below RSI 50 line.
3. Buy at market or place a buy stop order 2-5 pips above the high of the candlestick
4. Place your stop loss about 5 pips below the low of the candlestick.
5. Set take profit 3 times what your risked initially or there is a previous swing high you can
spot, then place your take profit target there.