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RSI or Fibonacci Indicator is best for Profitable Forex Trading

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  • RSI or Fibonacci Indicator is best for Profitable Forex Trading

    For all newbies, selecting best trading indicator is not an easy task. It will be right to say that these indicators helpful to make correct trading decision for all beginner traders.
    What you think, RSI ( Relative Strength Index) indicator is best or Fibonacci?

  • #2
    I think stochastic with fibo fan is best
    but i did make my own fan and used it with stochastic so far so good
    here is my strategy If you are a Day trader just Draw the fan like the picture below and wait patiently for these 3 signs Before making a trade (Usually one or two opportunities per Day)

    Set the time frame to M30 Draw the trend lines like the picture below and then wait for these signs

    1 stochastic must be above 80 for a Sell or under 20 for a Buy

    2 Bearish or Bullish Candle with long wick piercing the trend line with a long wick

    3 The bermuda Triangle side working as resistance or support

    here is AUDCAD (try it )
    Triangle coordinate for 2019.10.31 07:47:08

    Date1=2019.10.30 00:00:00 Price1=0.89818

    Date2=2019.10.30 23:30:00 Price2=0.90120

    Date3=2019.10.30 23:30:00 Price3=0.91764


    • #3
      Or 1 Set your 20 and 50 EMA and wait for price to exit the fan

      2 From the upper side with 20 and 50 EMA crossing or fanning it is a buy

      3 From the lower side with 20 and 50 EMA crossing or fanning it is a sell

      4The first trade should be small or conservative for safety and to protect yourself from false exits

      5 If the price goes back into the fan use the martingale system gradually at each branch of the fan that is reached

      6 The STOP LOSS for all entries should be set at the opposite side of the fan

      7 Never trade inside the fan unless when trying to save an early trade with the martingale system (Inside the fan is usually consolidation area)

      8 If you missed the first exit from the fan of the day and price retraces back to the border of the fan BE CAREFUL it might be a reversal


      • #4
        I think you did the right thing, since you immediately paid attention to classical analysis tools. I've heard that many traders are now choosing more modern approaches, and in general I don't see anything special about it and don't think it's a bad idea. On the other hand, I do think that classical tools have a more accurate rationale, and it's easier to understand right before you move on to more complex and usually more dynamic approaches. But maybe this is my opinion and other traders will prefer to work more actively, but still I think that the market does not like fuss and panic, it's better to act calmly and with a precise plan of action.