Using three timeframes with RSI for contrarian trading

Hello today!

The FX Research, this is Satoli.

This time, I examined an indicator that uses RSI across three time frames to generate reversal signals.


The one used for the verification is,the Early Entry MT4 RSIMA 3-Time-Frame Counter-Trend Signal Indicator.

The Early Entry MT4 RSIMA 3-Time-Frame Counter-Trend Signal Indicator displays a reversal buy signal when, among three consecutive time frames RSI, the top two are above 50 and the current RSI dips below 40; and displays a reversal sell signal when the top two are below 50 and the current RSI rises above 60.


The figure below is the USDJPY 1-hour chart.



In the above, when 1-hour RSI > 4-hour RSI > daily RSI is satisfied, a blue upward triangle is displayed,and when 1-hour RSI < 4-hour RSI < daily RSI is satisfied, a red downward triangle is displayed.

We will call the trend triangle a bullish or bearish turn.

In this case, right after the bearish turn, at the pullback, the first buy signal is issued.

Also, during the transition from bearish to bullish, a second buy signal is issued before the bullish turn.

The figure below is the EURUSD 15-minute chart.





The figure below is the AUDJPY 4-hour chart.






Among the EMAs above, the slope of the blue trend-detection EMA controls the indicator signals.


By default, EMA is not used, so please view the included EMA indicator for reference.

Thus, although you may sometimes feel trend reversal is slow,the Early Entry MT4 RSIMA 3-Time-Frame Counter-Trend Signal Indicatorisan indicator that notifies you of the timing to buy on a reversal during a bearish turn and to sell on a reversal during a bullish turn.

However, if you use a trend-detection EMA, consider setting it longer to capture the larger trend, and if the EMA slope is upward, only buy, and if downward, only sell.

Thank you very much for reading again today.

With that, please stay well.

Technical Trade Blog Ranking

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Publisher: Art Brain Products

FX Technical Strategy Researcher

Satoli Heart

Email: info at mark abproducts.biz

Blog: Fibonacci Retracement FX Research:http://fxmt4indicator.blog.jp/

Indicator & Tools & EA:http://fxmt4indicator.abproducts.biz/wp/

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