Yesterday we discussed trading RSI Reversals in our post.

Today we will look at 4 points on that same chart as our Friday analysis of RSI Reversals.

Point 1 – This was the signal from yesterday. If this trade was entered the trader could have held it and still be holding it. It went for over 150 pips and higher.

Point 2 – As the price flattened out many traders may have exited which often a good time to exit as the momentum in the trade has slowed. At the second signal we see a second RSI Positive Reversal that continued on for 60 plus pips. Although there appears to be a drawdown at this signal point it can easily be avoided using a Buy Stop as I teach in RSI Fundamentals: Beginning and Advanced along with many other techniques to improve trading results. The double top was probably the best reason to exit this trade.

Point 3 – Is another signal that created profit. Again, using the Buy Stop as the filter/entry technique we avoid the drawdown.

Point 4 – This Negative RSI Reversal isn’t relevant to our trade entry position at Point 3 because the trade doesn’t activate until after it forms.

To learn these techniques: RSI Fundamentals: Beginning to Advanced and the RSI Paint Indicator

Question: paul@youlearnforex.com

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