FXstreet.com Live Sessions Archives

Back to Basics - RSI

Expert: Adam Rosen, CEO and Co-Founder at 4xLounge
Moderator: Maud Gilson, Conference Manager

Summary:

We will take this opportunity to revisit one of the basics - Relative Strength Index

Bollinger Bands and RSI

Expert: Valeria Bednarik, Independent Contributor at FXstreet.com Independent Analyst Team
Moderator: Maud Gilson

Summary:

- Technical uses of these indicators.
- Practical trading examples.
- How to set stops and limits.
- Combine two indicators to filter market signals.

My favorite technical indicators to trade Forex

Expert: Valeria Bednarik, Independent Contributor at FXstreet.com Independent Analyst Team
Moderator: Maud Gilson

Summary:

Join Valeria Bednarik for FXstreet..com's April Monthly Webinar. She will explore what she considers to be the most effective indicators for her style of trading:

• Momentum Indicator
• CCI
• Bollinger Bands
• Moving Averages
• Stochastic Oscillators
• RSI

Don't miss Valeria's complete review of these indicators and how she uses them as a part of her trading strategy.

Multi-time frames for entry and exit signals in Forex

Expert: Peter Leonidou, Senyor Technical Analyst at Easy Forex
Moderator: Maud Gilson

Summary:
During the webinar, we will be doing live trading exercises, looking at single currency pair on multi-times frames (1 hour, 30 minutes, 15 minutes and 5 minutes). We will be analyzing pivot points, support & resistance, RSI, Bollinger Bands and moving averages used as confirmation signals to exit and entry points.

Advanced Forex Trading: Momentum Versus Reversals Within Indicators

Expert: Mark Whistler, Senior Market Strategist at TradingMarkets.com
Moderator: Maud Gilson

Summary:
So many trades often mistake "stock indicators" as tools to spot reversals; however, with the proper trend analysis, traders will find that momentum is easily derived from many common indicators. During this special Webinar, Whistler will show traders how to spot short-term momentum within markets... For quick trades in volatile markets built on speed.

Back to Basics -The RSI indicator; one of my favorites

Expert: Adam Rosen, CEO and Co-Founder at 4xLounge
Moderator: Maud Gilson, Conference Manager

Summary:
We will take a step back and review the various applications of the Relative Strength Index in range bound and trending market conditions.

Warning:
At the end of the webinar, sound alarms may disturb the viewer. Sorry for the inconvenience, we had a technical problem.

Common Break-Out Strategies

Expert: Adam Rosen, CEO and Co-Founder at 4xLounge
Moderator: Maud Gilson, Conference Manager

Summary:
We will identify easy to apply breakout strategies through the use of the most common technical indicators.

Weekly Technical Briefing

Expert: Dan Blystone, Founder at TradersLog.com
Moderator: Maud Gilson, Conference Manager

Summary:
In this webinar Dan Blystone deals with:

- Live Analysis of the EUR/USD
- Interpretation of Momentum Indicators, Trend Indicators and Chart Patterns.
- Key Support and Resistance Levels for the Session.

How to Determine Support and Resistance Levels

Expert:   Jerry Furst, Founder & President of InvestorsEducationNetwork.com 
Start:     February 8, 2006 - 15:00GMT 10EST 
End:       approx. 16:00GMT 11:00EST
   
Topics that will be covered for above session are: 

• How to Determine Support and Resistance Levels
• Determining Entry points for a trade
• Determining Exit Points for a trade
• Using Moving Averages
• Drawing Regression Channels
• How to apply Fibonacci Retracements

Who is Jerry Furst?

Jerry Furst is president and founder of Investors Education Network (IEN), an educational networking group for active traders and investors. He is a former senior analyst programmer with IBM and consultant to Fortune 100 companies. Mr. Furst has been trading his own account since 1987 and primarily trades and invests with forex currencies and equity options for his own accounts. He has found that running a networking group for traders is extremely rewarding as he continues to learn from the experts in the industry and the traders in his group.

Speech Material:

Support Resistance and Determining Entry and Exit Points.
Usually I would drill all the way down from the monthly, weekly, and then look for patterns and trade setups on the daily, 4 hour, 60, 30, and 15 minute charts. After doing this for so long it is actually a quick exercise, however the time flies by because it can get quite detailed. For the purposes of this brief presentation, we will not drill up or down. And only focus on the four hour chart.

Ok – Furst!  Let’s look at Moving Averages:
Click to enlarge:

I have the 7(Green), 50(Blue), and 200 (Black) MA’s plotted here.
The concept is that MA’s act like magnets. By themselves MA’s are weak price targets, but you can be sure a lot of people are looking at the 50, and 200.  In this case, we have a great example on The Euro Monday night around 1am EST with the Euro trading at 1.975. You can see the two moving averages converge at the 50 and 200, that’s a stronger magnet than just one.

Now, Let’s add my Linear Regression Channel:
Click to enlarge:

The concept of Linear Regression Channels (LRC) is that they are plotted at a standard deviation on both sides of the closing price. Similar to the concept of Bollinger Bands – but different. Without getting too deep, look at how price is behaving in between the blue outer bands and the Red “Heart Line” in the middle.

This is showing potentially a fantastic target @ 1.2067 as the top of the LRC is converging with the 200ma and the 50 ma. The 50 ma is also running parallel to the LRC.

And saving the best for last – Fibonacci Retracements and Extensions:
Click to enlarge:

I have drawn the Fibonacci Retracements from the top left Pivot Point @ 1.2322, to the Bottom of the current run down @ 1.1943. Notice the 25% retracement @ 1.2037 is showing a prior Resistance area. That will be my first price target.

We now have all three technical analysis tools in place on this four hour chart.
Click to enlarge:



We have a perfectly Symmetrical Trade of 27 pips per target!

The trade will be triggered to buy 4 lots @ 1.2008 with a 10 pip trailing stop.
PT1 @ 1.2035 = 27 pips exit two lots (just below the 25% retracement)
PT2 @ 1.2062 = 54 pips exit two lots (just below the 200ma and top of the LRC)
SL   @ 1.1981 = 27 pips exit trade at loss (Risk Reward = 1:1)

Now lets see the order placed on the Proedge FX – GTS Platform
to auto execute in a “Set it and forget it trade”:
Click to enlarge:

View our Q&A Schedule here

Using RSI in trading systems

Date: December 22nd, 2005 - 14:00GMT

Expert: Igor Belitsky, Analyst of FX-Dealer.com

Topics:

• General RSI trading rules
• Composition of RSI and Bollinger Bands
• Trading System example

Who Igor Belitsky?
Igor Belitskyis a specialist in applied mathematics and trading systems development. Since 1996 he has been working as a forex market analyst in a Moscow based financial company

Speech Material:

Using RSI in trading systems

1. General RSI trading rules
Relative Strength Index (RSI) is the most popular technical indicator. Below are 4 well-known RSI trading rules:

RSI levels of 70% and 30% (80% and 20%) are known as overbought/oversold levels. Buy signal generated when the market is oversold, sell signal generated when  the market is overbought. These levels are only working good inside range phase and produce losses during trend phase.

EMA often plays the role of support and resistance just the same as for the price itself. Buy signal generated when RSI rises above its EMA, sell signal generated when RSI drops below it's EMA. EMA is always lagged behind and often produce buy signal when up-trend is over.

Bullish divergence and buy signal occurs when price makes a new low which is not confirmed by RSI, bearish divergence and sell signal generated when price makes a new high while RSI fails to make a new high. The main drawback of divergences is that they are trying to predict trend reversals instead of trend-following signals.

Chart formations like trends, support/resistance, triangles, head and shoulders and so on are applied to RSI just the same way as they are applied for the price. Bad thing is that chart formations like trends and triangles are very subjective and could not be used in trading systems.

2. Composition of RSI and Bollinger Bands
We apply Bollinger Bands study to RSI indicator. Buy signal is triggered when RSI falls below Lower Bollinger Band. Sell signal is generated when RSI rises above Upper Bollinger Band. There are many signals against the trend so we need to use some trend filter. We add MACD indicator as trend filter. If MACD>0 the trend is upward, if MACD<0 the trend is down.

The main advantage of using RSI with Bollinger Bands is that it helps to catch trading signals inside trend phase while standard overbought/oversold levels are useless inside trend. We believe that RSI(Bollinger Bands) composition study is working good both in range and trend phase while 80% & 20% RSI levels are only suited for ranges.

3. Trading System example
Below is USD/CHF 240 minute chart with sample automatic trading system. Sell signal is generated every time RSI rises above Upper Bollinger Band while MACD<0. Buy signal is generated when RSI falls below Lowe Bollinger Band while MACD>0.

Click to enlarge :



Click to enlarge:

If we used RSI overbought/oversold levels on the chart above we would have missed sell signals inside down-trend as well as buy signals inside up-trend phase while composition of BOB(RSI) works fine.

Below is equity chart for this trading system based on target order = +400 pips and stop-loss order = -200 pips. There are 222 trades with total profit of 6040 pips. Spread of 5 points was included. We tested it on historical USD/CHF 240 minute chart with 2500 bars. This system is not perfect because maximum drawdown is more then 1500 points.

Click to enlarge: