Ever wonder what makes what makes a Forex trading signal successful? It is obvious that if it earns pips, there is very low risk of drawdown. it’s frequent and you can count on it to succeed more than it does. Isn’t that the definition of a successful Forex signal?
It took me about three years to locate the information. I found it while reading Constance Brown’s book known as a well-known author of trading. In her book, Constance Brown mentioned that she knew Andrew Cardwell THE expert on RSI The Relative Strength Index. He could talk for hours on the subtleties of RSI she explained. That was enough for me to be curious.
Nearly three years later I’ve discovered a ton of information on RSI that are not found in any book I am aware of, or can be found nowhere accessible on the Internet other than in my ebook, my website, and the articles I’ve written for associatecrypto.co.uk Articles. This is a tiny portion of what I’ve discovered.
Reversals are not well-known.
Reversals are trading signals that were discovered by Cardwell as a student of Welles Wilder the man that developed the RSI. Welles Wilder went on to other areas, but Cardwell was a firm believer in RSI and discovered reversals.
Divergences cannot be achieved with reversals
Many people associate trading RSI with divergences. But, divergences in RSI are signals that the trend is slowing and is likely to retract. Reversals are momentum indicators that perform better.
Trend continuation is a possibility when trend reverses take place
Reversals on RSI indicate that the price is in the process of preparing to move on to the next trend. Trading with the trend is more efficient because momentum is stronger with trading, compared to. Reversals signal to traders that momentum is changing in the direction of the trend and they can be found in any currency pair, and any timeframe.
Reversals read momentum
RSI trading is trading with momentum. There are 4 RSI Trading Signals all which reveal information about momentum in the market. Regardless of whether the signal is positive or negative, there will be no market if there isn’t momentum is present.
Trading’s most secretive trader is the RSI reversal. Reversals are easily identified by traders using the RSI Paint Indicator. The indicator instantly detects them, and will assist you find profitable trades.
Paul Dean, the founder of You Learn Forex, has been trading Forex for over five years. For the past three years, he has been working on a lot with RSI (the Relative Strength Index) and developing new understandings along with David Moser, a trader/programmer. The research provided important statistical data about RSI that can be utilized to help make better decisions when trading.
This information is available in his book, RSI Fundamentals: Beginning to Advanced. It has 195 pages and over 100 charts with color in downloadable format. They are all made up of a statistically based Forex trading system called The RSI PRO Forex Trading System that utilizes 4 signals from RSI to make trades.
He also developed a popular indicator called the RSI Paint Indicator. This indicator was adapted from a standard RSI and will alert traders to the four RSI signals. [http://www.youlearnforex.com]. Visit the site to download a no-cost eBook about the RSI PRO Forex Trading System as well as the 4 RSI trading signals.