In this strategy we will use two standard indicators to obtain the trading signals to buy or to sell.
- Zigzag: we use standard settings, changing the Depth to 100.
- RSI: settings remain unchanged with the period 14.
Trading instruments are EUR/USD or GBP/USD.
The level of T/P: 60-100 points.
The level of S/L: 15-20 points.
It is worth remembering: in case of S/L, we shall not open positions in this direction but wait for the opposite signal, that is: if after the buy transaction the price goes down up to the Stop Loss, we will not open any buy positions but will wait for the signal to sell.
Short positions can be opened when the indicator Zigzag reaches the upper point of the candlestick or HIGH, while RSI will be in the overbought zone or above 70 (fig. 1).
Long positions can be opened when the indicator Zigzag reaches the lowest point of the candlestick or the LOW, while RSI will be in the oversold zone or below 30 (fig.2).