Forex Trading Thoughts and....

It the same old thing. RSI is oversold, price is close to both a round number and S1 daily pivot. Does it ever get boring making money? Not yet for me, anyways.

I wanted to clarify how the RSI(14) is used. Start by applying the RSI(14) indicator to both the 15-min and 5-min charts. Also apply a 56ema moving average indicator to the 15-min chart. The 56ema gives a close approximation of the 14ema from the hourly chart. Here's how to use the RSI. You use it only as an alert. It's not a blindly mechanical indicator. Price needs to be at, approaching, or in close proximity to another source of support or resistance such as a daily pivot, a significant fib level, a round number, the 56ema on the 15-min chart, etc., in addition to the RSI(14) being overbought/oversold. A double bottom candle formation is helpful as are any of the typical candle formation for reversal. Check out the following post to see how well this works. I have my trade notated on the image. How many other entry opportunities can you spot? There are at least two others for exceptional short trades. I was unable to take the other opportunities as I was not at the screens y

This was a decent trade tonight. I could have had a bit better entry at the daily pivot to gain a few more pips but it is what it is. The trade follows the rules of entry for my strategy to a tee. Discipline and patience are most of what is required to be successful. That and whole lot of screen time.