RSI 13-3 Trading Strategy

[greencat]

This is an easy method that can make some sweet green. I am going to post two charts to demostrate how this works.

Most of us have heard, "the trend is your friend until it ends" Using the RSI 13-3 method is a trend friendly entry point system. We all know when we see a trend we ask ourselfs, "where do I try an entry"

"Its to late, the trend has already left me behind"

This systen is not foolproof but can get you into many entry points and let the trend work its magic. The charts demostrate countertrend trading is hard unless in a sideways market. However I note that counter trades can be made as long as your expatections are not that high.

I love to countertrade against the the trend but I don't expect to make the super trade and rake in 200 pips. I keep my take profit at a level I think it will attain.

Many of my counter trades are hedges. This means I.E. that if I am long and I see a pullback I will short it looking for some pips while leaving my longs inj the trade. When I do this I have 0 risk until I remove the short.

If the pullback was for 50 pips and I removed my short and then the stock moved back uo as the trend would dictate then I will win this 50 pips on the short plus let my long carry the trade until its done.

1st chart shows how little the counter trend trades would have made while when hitting this method with the trend would of made a nice chunk of change.

The white lines on top show where I would have taken a couter trend trade. The bottom ones show the trend trade using the RSI 13-3 method.



For a larger Chart click link below
http://farm4.static.flickr.com/3310/...7e27b353_o.gif


Our second chart show us in a ranging market and long and short trades can be profitable. We do have the benefit of seeing these charts in the completion. When in progress it can be difficult to determine where the trend is heading. I employ the Higher High, Higher Low- Lower High, Lower Low therory to help me determine where we stand.



For a larger chart click link below

http://farm4.static.flickr.com/3301/...c70926fc_o.gif

[greencat]

This chart show the Higher Highs Higher Lows and Lower Highs Lower Lows. The white lines show entry points. One of them was a loser.



For A Larger chart click link below

http://farm4.static.flickr.com/3130/...b5c842c9_o.gif