0.382 Push and RSI 3TF Mean Reversion Timing Comparison

Hello.

This is Satori, researching FX.


This time, I compared the timing to enter on a 0.382 pullback in the USD/JPY daily chart with the timing of RSI inverse signals across three timeframes.





The figure above is the daily chart of USD/JPY.


In the main chart,Fibonacci retracement indicator pullbackis set to give a buy signal at the 0.382 retracement.

However, since a trend filter is not used, buy signals can appear even while the trend is turning bearish.

In the sub-chart,the MT4 RSIMA 3-timeframe reverse-trend signal indicator is displayed, indicating an early entry.

The RSI on the monthly frame is too long a period, so only the weekly frame is used for the higher timeframes.

The RSI on the weekly frame in green is above 50, and the RSI on the daily frame in blue is below 40, so it is judged that the weekly uptrend is in progress and the daily RSI made a pullback, producing a contrarian buy signal.

As you can see on the chart, the RSI inverse signal for 3 TF appeared a little before the 0.382 pullback in the downtrend.


After that, it zigzags while raising the low, and on the main chart two Fibonacci buy signals appeared at the 0.382 pullback timing.

The latest low of 112.034 turning up without breaking the previous trough low of 111.994 shows that Dow Theory is indeed alive.