Reverse RSI Strategy [Video]

The vast majority of methods with the use of RSI indicator relies on entries in the direction of the trend. Unfortunately, this approach has many disadvantages. Among other things, it carries the risk of significant losses when the market is in a sideways trend. So how do we reduce these losses and what other uses can the RSI have in our trading? We answer these questions in this material. We invite you to test the reverse RSI strategy.

Advantages:

• • Simple and clear rules for input / output and target settings for SL and TP.
  • Availability of the indicator. Every trading platform has it.
  • A large field for modification. Adding a divergence or price action would likely help you get better results.

Disadvantages:

• • False signals. The bane of traders, despite the use Ichimoku we are unable to get rid of them completely or minimize their significance.
  • Average effectiveness. Of course, in the end the result is positive, but compared to other strategies, it does not stand out in this respect with anything special.

Trading strategies is an educational cycle in which we present interesting investment systems intended for Forex market. We discuss the most important principles such as entering and exiting a transaction, the degree of risk, assessing the advantages and disadvantages and checking what results they generated on historical data.

Do you want us to check a specific strategy for you? Let me know in the comment!

The partner of the educational cycle is Tickmill broker.