Gist of the strategy
An intraday trend strategy based on the RSI oscillator and Heikin Ashi candlesticks.
The strategy helps you efficiently find signals to open positions when the RSI crosses the 50% level, when the price is moving quickly, which is most accurately seen in the Heikin Ashi candlesticks. The signal to close a trade is when the RSI crosses the overbought or oversold level (30%/70%) while the trend persists.
Getting ready to trade
Open the platform. Select the chart type “Heikin Ashi candlesticks,” and a TF of M5-M30
Apply the RSI indicator to the chart with a period of 14
Open a "Buy" trade
Identify an ascending trend using Heikin Ashi candlesticks. When the RSI crosses the 50% level bottom up, open a “Buy” trade .
Close the trade manually when the RSI indicator reaches overbought territory (70%) or set a Stop Loss at the next peak low on the chart.
Open a "Sell" trade
Identify a descending trend using Heikin Ashi candlesticks. When the RSI crosses the 50% level top down, open a “Sell” trade.
Close the trade manually when the RSI indicator reaches oversold territory (30%) or set a Stop Loss at the next peak high on the chart.
Assets recommended for trading: EUR/USD, USD/CAD, GBP/USD, AUD/USD, USD/JPY.
Support/resistance and other trend indicators can be used as additional tools.