Trading based off of RSI

[sunabeach]

Using RSI, Stochastic or other well known overbought/oversold oscillators with default settings without other confirming "factors" has been proven a long time ago to the road to going broke.

[Mplay]

Knew


U may look at a momentum indicator like CCI to see when the market has actually begun its move in the direction that U R looking for.

[Knew 2 4 X]

Thanks.. Ill have to read up on CCI as well. Dont know anything about it.

[jrinvestors]

I have noticed that when the RSI is either o/b or o/s, a good # of times you will get a divergence as currencies tend to keep moving in the same direction. So if you dont feel comfortable trading o/s o/b levels, wait for a divergence. You will get less entries, but most of them will be profitable.
I complement my RSI readings with stochastics and true strenght. Find the true strength a little bit lagging, but it get's me in closer to the top or bottom. Also I changed the threshold on my RSI to 25 and 75

[ampris2000]

the cci i think is complicated for a beginner.

do this and you'll see it works good.
use the macd at default settings and rsi 50.

when macd says buy and rsi>=52 then buy
when macd says sell and rsi<=48 then sell.

or you could change the macd #'s to 20,100,9 just for a more solid signal.