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RSI PI Trading Strategy: LONG (BUY) Setup
I want to share a trading strategy that I have been using for over a year now. It has been giving me consistent winning trades, about 95% win rate.
I call it the RSI Pi Strategy because I am using both the RSI 3 and 14 periods (Pi = 3.14, get it?) to set up each trade.
In this chart, I will show how to set up the RSI Pi LONG (Buy order) trade. Below are the steps:
1. Before setting up the trade, an important condition must be met. Make sure that RSI 14 is below 50% and RSI 3 must be below 30%. Price must be also below 50% as well. The best condition is that both RSI must be below 30%. I call this condition the 'Bullish Blip' - where RSI are below 30% where divergence can form that could indicate trend reversal.
2. Wait for RSI 14 and 3 to close above 50% and 70% respectively. Then enter initial BUY order when green candle formed with corresponding RSI values of greater than 50% (for RSI 14) and equal of greater than 70% (for RSI 3). In this example, initial BUY order (green vertical line) was placed when the candle closed at 54.62% (RSI 14) and 82.95% (RSI 3), and the price was around 37500.
3. If the price needs to retest the 50% level (yellow line), than repeat step 2. In this case, secondary buy order (orange vertical line) was placed when green candle closed with corresponding RSI 14 and 3 values of 57.83% and 74.75% respectively. Price must closed above 50% at this time.
4. Implement a trailing stop loss. On one hand, exit the trade when a candle closed with RSI 14 value of less than 70%.
This strategy is best implemented when using multi-time frame analysis. It is also best to enter a trade at lower time frame by following the steps mentioned. Nonetheless, it works in all time frames.
Please feel free to ask or comment below.
/please DYOR/trade at your own risk
I call it the RSI Pi Strategy because I am using both the RSI 3 and 14 periods (Pi = 3.14, get it?) to set up each trade.
In this chart, I will show how to set up the RSI Pi LONG (Buy order) trade. Below are the steps:
1. Before setting up the trade, an important condition must be met. Make sure that RSI 14 is below 50% and RSI 3 must be below 30%. Price must be also below 50% as well. The best condition is that both RSI must be below 30%. I call this condition the 'Bullish Blip' - where RSI are below 30% where divergence can form that could indicate trend reversal.
2. Wait for RSI 14 and 3 to close above 50% and 70% respectively. Then enter initial BUY order when green candle formed with corresponding RSI values of greater than 50% (for RSI 14) and equal of greater than 70% (for RSI 3). In this example, initial BUY order (green vertical line) was placed when the candle closed at 54.62% (RSI 14) and 82.95% (RSI 3), and the price was around 37500.
3. If the price needs to retest the 50% level (yellow line), than repeat step 2. In this case, secondary buy order (orange vertical line) was placed when green candle closed with corresponding RSI 14 and 3 values of 57.83% and 74.75% respectively. Price must closed above 50% at this time.
4. Implement a trailing stop loss. On one hand, exit the trade when a candle closed with RSI 14 value of less than 70%.
This strategy is best implemented when using multi-time frame analysis. It is also best to enter a trade at lower time frame by following the steps mentioned. Nonetheless, it works in all time frames.
Please feel free to ask or comment below.
/please DYOR/trade at your own risk
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