Tuesday, October 09, 2007

RSI/MACD System Basics

In the trading system based on TRSI/RSI and MACD indicators it is important to find out tht basic pattern "a gold cross", i.e. divergence between RSI and MACD. The system works on 1, 5, 10, 15 and 30 minutes, hours, day and weeks. A recommended time-frame is not less than 5 minutes.

This document contains only the information of educational character and an exchange of trading ideas. Anything mentioned in this document and as your interpretation of the information or diagrams, cannot be apprehended as trading advice. The trade undertaken on the basis of this educational information, is strictly yours own risk.

The Purpose of this document consists in helping traders to study system RSI/MACD, in its all completeness and also to understand, how itself trades on this system. Such by they will spend time at the monitor, studying practical use of this system instead of trying to understand, what principles of work of system. However this document explains only main principles of work of system. Many weeks are required from the monitor to you to seize this system completely. You do not become the successful trader if will not follow all instructions and to not spend long hours at the monitor. Study history and patterns. The basic attention to give do not find fault-low with the price, and to behavior of indicators. The price always is derivative chaos of the market, catching of a bottom and maxi - empty employment. Nobody can predict the price.

This document demands, that you followed your trading rules. It is a unique way at which you become the successful trader. RSI/MACD - very simple system. Rules are very simple. Do not allow lack of the intellectual control to destroy your trade. Concentrate on system, and you will succeed. Instructions will tell All of you, that you should know. Only follow them directly and precisely.

The System is based all on 3 indicators, candles: MACD 12/26/9 Close, RSI 9/3 Close, candles are used as the price indicator, a time-frame - not less than 5 minutes. These are standard adjustments of the combined indicators, on Close - work the majority of traders.

RSI/MACD system basics

To predict - for slaves..., to react - for kings?, the wise man operates in advance! Get Forex forecast!

You do not need to reflect, something to add or invent at trade on system RSI/MACD. system RSI/MACD represents a full set of instructions to which you should follow. It is not necessary to add anything to it. The system is finished, exact and has well proved in a reality during many years.

The majority of traders try to understand all "why" on the basis of which this or that trading system works. I believe it is correct. You should understand, as well as why that you do, works. However it is not necessary so to do at a grade level and development already proved as working trading system since it will not bring additional results. System RSI/MACD just also is such type of trading systems. Study system, trading on it on tools (a demo the account) while be not convinced of all. Study and penetrate in system gradually, not trying to understand all at once. Simply follow instructions, not setting a question why you should operate so. Then you will understand all "as" and "why" the system works.

System RSI/MACD is not similar to one other system. It is simple, finished, exact, clear and unambiguous. It forces to be mistaken much less often, than can seem. In system there are no inconsistent signals. Therefore be not afraid. You should not guess what. Patterns, entrance signals and signals on an output are clear and precisely certain. Simply reject all your doubts and follow instructions.

At testing on Omega TS the system shows 85% of successful transactions.

Indicator RSI has some nuances which it is impossible to explain in this document. They can be mastered only in due course, lead in an expert at the monitor. But all instructions which will be necessary for you, are resulted here and they will help long enough to you while you will not start to trade perfectly.

Danger of inputs-outputs is especially great at average values RSI and the unsteady trend.

I spent about 3 years on testing alive this system, therefore it and became simple, finished and profitable. In system RSI/MACD trading schemes are certain. They will let to you the know when it is necessary to begin trade and to leave it. This everything, that is necessary for you.

RSI/MACD - an outstanding system, because you do not need to think or guess to find out. Simply operate according to instructions. Any other system does not define trading schemes, inputs and outputs also is clear, as RSI/MACD does it for you. Take its advantages. Allow it to make for you all work.

Actually, the majority of other trading systems could be profitable for you if you had a clear and precise set of signals for actions which never would contradict each other. Usually other trading systems use late indicators and cannot provide clear signals on an input and an output. And without a clear and laconic set of trading rules you never can successfully trade. System RSI/MACD will provide you with clear and laconic patterns, signals and instructions. Follow them, and at All of you it will turn out.

One more problem of other systems consists that they mean the reference to too big number of indicators. You cannot trade with use of such big number of indicators because the analysis all of them will simply overload you. You cannot simply fulfill a signal. What for to add to your graphs so a lot of superfluous? Can be because nobody spoke you, to not do it. But now you know, therefore - do not do.

When the system uses too many indicators, it is insufficiently clear, and it is difficult to you to react to signals of an input and an output. Or, that is even worse, you enter into trade, but do not leave it because one of signals shows, that it is possible to remain in the market. RSI/MACD defines clear outputs. There can be no justifications to that you have remained in the market when there was a signal of an output. It is one of remarkable properties of system.

Probably, other systems are less effective because you do not understand, that presence and following to the exact plan of trade - a unique way to trade successfully. So, if you do not have own trading plan, or trade goes not so successfully, study system RSI/MACD to follow for it and to refuse bad trading habits.

The formula of indicator RSI is based on an impulse of the prices for the certain period of time. It is advancing, instead of the late indicator. It advances all other indicators. If to unite it with system RSI/MACD it is possible to win against all other systems of trade.

System RSI/MACD allows you to advance other traders at an input in trade on one or more bar, and also to advance at an output from it, that prevents greater losses. system RSI/MACD protects you from losses and increases profit. Do not spend all for nothing time.

Be focused on instructions. Think of them. Each time, discussing system, you try to expand, eventually, the knowledge and to improve results of trade. You constantly discuss some statements which you have learned from books, brochures, on websites or even have heard from people who, probably, never traded. Be focused only on RSI/MACD and trade under instructions. RSI/MACD deals directly with life cycle of the price.

System RSI/MACD cuts all problems which you could have at trade, - gives a full, exact and clear set of instructions. You "have learned" much about ways of trade from other trading systems or from books, however it has not so helped you. Actually, even injured you. Forget while about all this, find it useless. Only be focused on trade according to instructions, not thinking about what the friend. Do not try to understand, why. The market always moves in the direction, passengers enter and leave according to the intention and destination.

Also it is very important to observe not of absolute change under the account, and for % of change.

"Losses - a part of trade", "Reduce losses, allow profit to grow", "Do not trade against a trend", etc. to you spoke about it hundreds times, however it all the same does not work. Only follow system RSI/MACD which has taken care of all for you. The system defines all the rules necessary for full trading system so you should not think. Everything, that you should - react only to signals, and all will be fine.

RSI/MACD will prompt, when to you to enter into the market, will help to receive solid profits, and to leave the market with small losses. It also will not allow you to trade against a trend. Only follow its instructions that is not difficult. Any other system of trade does not go so far in management of each aspect of trade.

One of improbable secrets RSI/MACD - that the system represents the opportunities not accessible before, and cleans all unnecessary. Thus, at this trading system does not remain unresolved problems. For example, you learned how to trade at the bear flags, gaps and a wedge in many various ways. So, on what way to stop? Probably, each time is necessary a new method? Here in what a problem. And as you have studied many ways of trade do not dare to follow simple rules. Forget all this. RSI/MACD gives new conditions for trade that you have not got confused.

At trade RSI/MACD everything, that it is necessary - to find RSI/MACD patterns. System do not interest, that remind price bars, it does not worry, that other indicators or other markets do. Any of these questions. It is focused only that now does your separate market and allows you to trade. This system is simple and consequently very well works.

RSI/MACD stops all doubts which arise at studying other websites, newsletters, books and clauses. Forget all this material. All this while is useless. Think of system, as about a new way of trade.

Unique application of price bars - to define a level for an enter/exit.

At installation of warrants remember that you advance others on 1 and more bar, warrants are better for exposing on a body of the previous candle, the price usually comes back.

Patterns of RSI/MACD allow you to trade very well. Follow instructions carelessly, nothing adding and complicating, and with you nothing to happen.

If you yet do not trust, that trade can be so simple, or are not courageous enough precisely to follow instructions how is told here then you can not read other part of this document. Throw out it, and go further.

(
by Ivan Petrov,http://forex-forecast.net)

5 comments:

Anonymous said...

you did not even discus how to use rsi/macd together your article kept repeating the same thing over and over. I was extremely dissapointed
ryan8247@gmail.com

Anonymous said...

thanks for excellent articles
one more things, can you discuss/gives us the tips how to use RSI/MACD

ifxsabah@yahoo.com

Anonymous said...

Thank you very much for sharing this system which I believed is more or less complete.

I find it best to use it to check for main trend at 4H chart by looking at the MACD.

The two RSIs are to be overlapped with MACD.

The correlation between the MACD and the TRSI gives the potentional reversal signal and the timing to enter and exit position.

That all I want to share. The rest please work it out. It will be worth the time and trouble.

Anonymous said...

The MACD/TRSI System as I understood it and took me 6 years to understand and acclaim it. Below are my tip (only).

1. Open 4H chart. elect EURUSD preferably.
2. Add Ema26 red
3. Add ema12 blue.
4. Add Bban
5. Add MACD (12,26,9)
6. Overlap RSI 7 with level 30, 70 colour silver
7. Overlap RSI 3 with level 50 gold

This will give you trend direction, entry, trend reversal signal and exit point.

Invest your time or money, the choice is yours. Pray for wisdom and you shall laugh when you see th secret.

I thank the author for sharing this tip of this amazing system.

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