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quintomudigo
5 лет назад

EUR/USD trading idea using RSI and moving average

RSI is an oscillator indicator while moving average is a trend indicator.
Today the EUR/USD market has been in a bullish trend most of the time.It has managed to rise above 1.1300This is indicated from the candle sticks chart below

From the candle stick chart above, there is point A located along moving average and point B located along RSI. Although the market has being in a bullish situation most of the time, we can use the concept of RSI and moving average to predict the direction of the market for the remaining time.
Using the concept of RSI, the market is normally considered to be oversold when the RSI curve falls below 30 and overbought when the RSI rises above 70.At point B the RSI has risen above 70 thus an indication of an overbought condition at that point. Although today market has managed to plunge above 1.1300decide to follow the concept of RSI and enter a sell position because at above 70 ,that is an indication that the market has become overbought thus the market will start a downward trend.

Using the concept of moving average, the market is considered to experience a reversal trend if the price rises above the highest high of moving average or falls below the lowest low of moving average. At point A, the price has risen above the highest high of moving average thus a downward reversal has started to take place.Although today market has managed to plunge above 1.1300 can decide to follow the concept of moving average and enter a sell position because the price has risen above the highest high of moving average.
Here is how our trading idea for buy market today looks like;

SELL T/P S/L
1.1300 1.12700 1.13400

This is only a trading idea. This is not an investment idea.When you enter the market make sure to apply you strategy created and your risk management created

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