Binary Comodos RSI Forex Trading Strategy

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Binary Comodos RSI Forex Trading Strategy

There are many ways to trade the forex market. Some traders make use of fundamental analysis while others prefer technical analysis. Many technical chartists prefer to use price action on naked charts while others prefer an algorithmic type of strategy using technical indicators. Some traders prefer day trading while others swear on swing trading. Any of these types of strategy could work. There is no one correct way to trade the market. There is only what works and what does not.

The Binary Comodos RSI Forex Trading Strategy is a type of strategy that works well and produces excellent trade entries on almost all forex pairs. It is an algorithmic type of strategy with a very high probability of a winning trade coupled with a high reward-risk ratio. This results in more wins and higher gains. While most strategies settle for either one, this strategy has both.

Algorithmic strategies work because it is based on probabilities. It either produces entries that would result in a win more often than not, or its entries tend to result in a trend producing high gains. These conditions when traded multiple times would often result in a net profit, which is what traders are looking for. If you would want a strategy that could produce consistent results, this type of strategy could be for you.

Binary Comodos

The Binary Comodos indicator is a custom indicator that provides trade entry signals. These entry signals are based on a confluence of conditions programmed within the indicator.

The indicator simply prints an arrow pointing towards the direction of the trend on the candle where it detects a high probability trade entry. It prints an arrow pointing up indicating a potential buy trade setup, and it prints an arrow pointing down whenever it detects a potential sell trade setup.

The trade setups that this indicator produces have a high win probability and would often result in strong momentum price movement.

Bull Bear RSI or BS Trend

The Bull Bear RSI or BS Trend indicator is a market bias filter indicator. It simply indicates which side of the market is dominating, whether it is the bulls or the bears. This allows traders to trade in the direction of the market bias.

This indicator prints bars to indicate what the market bias is. If the bulls are dominating the market, the indicator would print a positive bar. On the other hand, the indicator would print a negative bar if it detects that the bears are dominating the market.

Trading Strategy

This is a simple strategy based on the confluence of the signal provided by the Binary Comodos indicator and the Bull Bear RSI indicator.

The signals provided by the Binary Comodos indicator should be closely aligned with the shifting of the BS Trend indicator from positive to negative or vice versa. This ensures that the trend reversal is still fresh and could continue further.

Indicators:

  • BinaryComodos (default setting)
  • BullBearRSI
    • Period: 24

Preferred Time Frames: 1-hour, 4-hour and daily charts

Currency Pairs: major pairs, minor pairs and some exotic pairs

Trading Session: Tokyo, London and New York

Buy Trade Setup

Entry

  • The Bull Bear RSI indicator should be printing positive bars indicating a bullish trend bias.
  • The Binary Comodos indicator should print an arrow pointing up indicating a bullish entry signal.
  • These bullish conditions must be closely aligned.
  • Enter a buy order on the confluence of the conditions above.

Stop Loss

  • Set the stop loss on the support level below the entry candle.

Exit

  • Close the trade as soon as the Bull Bear RSI indicator prints a negative bar indicating a possible bearish trend reversal.
  • Close the trade as soon as the Binary Comodos indicator prints an arrow pointing down indicating bearish entry signal.

Binary Comodos RSI Forex Trading Strategy

Binary Comodos RSI Forex Trading Strategy 2

Sell Trade Setup

Entry

  • The Bull Bear RSI indicator should be printing negative bars indicating a bearish trend bias.
  • The Binary Comodos indicator should print an arrow pointing down indicating a bearish entry signal.
  • These bearish conditions must be closely aligned.
  • Enter a sell order on the confluence of the conditions above.

Stop Loss

  • Set the stop loss on the resistance level above the entry candle.

Exit

  • Close the trade as soon as the Bull Bear RSI indicator prints a positive bar indicating a possible bullish trend reversal.
  • Close the trade as soon as the Binary Comodos indicator prints an arrow pointing up indicating bullish entry signal.

Binary Comodos RSI Forex Trading Strategy 3

Binary Comodos RSI Forex Trading Strategy 4

Conclusion

This strategy is a high probability, high yield type of strategy. It could produce a high win rate coupled with trades that have a high reward-risk ratio.

Not all entries would result in a win, however, traders should be getting enough wins and higher gains to warrant a positive expectancy when trading this strategy.

It is also best to couple this strategy with candlestick and price action patterns in order to get the best trade setups and avoid losing trades.

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