Simple Intraday Strategy (Candlestick Pattern + RSI)

If you're new to intraday trading, you may be looking for a simple strategy to get started. While more experienced traders may turn to complex candlestick and oscillator patterns for a reliable edge in their trading, there is an easier way to approach intraday trading. In this guide, we will outline a simple intraday strategy that may help you improve your trading results.

There are many good strategies that require knowledge of candlestick and oscillator patterns. However, nothing is profitable.

When you start trading with the strategy, you may encounter a situation where the strategy does not work as expected.

That's what happens once you do not check your commerce strategy completely. Luckily, we've backtested many methods supported combos of oscillators and holder patterns, and picked the most effective one for you! Welcome, RSI Strategy and Bullish/Bearish Engulfing Pattern!

Strategy Setting

 

•  Instrument: EURUSD 
•  Indicator: 11-period RSI 
•  Time range: H4 
•  Risk management rules: Fixed trading volume 0.1 lot

Buy position entry rules

Wait for the optimistic Engulfing pattern to create. this is often a reversal pattern that forms at the top of a downtrend. It consists of atiny low red holder and an oversized inexperienced holder that engulfs a red holder. little short holder shadow.

• The holder pattern should be confirmed by the RSI indicator moving below the forty level.  
• Open your position on ensuing holder once the pattern is confirmed. 
• You should shut long positions once the RSI indicator moves on top of the seventy level.

In the image on top of, you'll be able to see AN example of this strategy on the H1 timeframe on the EURUSD chart. once the value fashioned a optimistic engulfing pattern, the RSI appears to be moving below the forty level. we will open a purchase trade at the gap value of ensuing optimistic holder once the pattern at one.12939. we want to shut purchase trades once the RSI breaks up the seventy level at one.1340. we tend to managed to urge 461 points.

Sell position entry rules

Wait for the pessimistic Engulfing pattern to create. This pattern consists of atiny low inexperienced holder followed by an oversized red holder. 

• The holder pattern should be confirmed by the RSI indicator that should be on top of the sixty level. 
• After the pattern is confirmed, you wish to open a sell position on ensuing holder, it ought to be a red (bearish) holder. you must shut short positions once the RSI indicator moves below the thirty level. 
• You need to shut long positions once the RSI indicator moves below the thirty level.

In the chart on top of, we tend to opened a sell order once the pessimistic Engulfing pattern was confirmed by the RSI moving on top of the sixty level at one.1345. once the RSI enters the oversold zone, we want to shut the position at one.1298. we tend to managed to urge 470 points