USDCHF LOSS

USDCHF LOSS

23rd January 2019 contacttf

The Relative Strength Index (RSI), developed by J. Welles Wilder, is a momentum oscillator that measures the speed and change of price movements. The RSI oscillates between zero and 100. Traditionally the RSI is considered overbought when above 70 and oversold when below 30.

This was a very poor trade.
The setup was never going to be successful because of the following reasons
1. The RSI was floating midway through the upper an lower echelon.
2. The RSI on the 15 minute and 30 minute were both Bearish.

This experience felt like, I was catching a falling knife.

The only consolidation and positive I could take was that the loss was kept to a minimum.

The stop loss was very tight.

The relative strength index (RSI) is most commonly used to indicate temporary overbought or oversold conditions in a market. An intraday forex trading strategy can be devised to take advantage of indications from the RSI that a market is overextended and therefore likely to retrace.