USD/JPY trading idea using RSI and moving average

USD/JPY trading idea using RSI and moving average

By quintomudigo | Teacher forex school | 20 Jun 2019


RSI is an oscillator indicator while moving average is a trend indicator.

Today, the USD/JPY market has been in a bearish trend most of the time.USD/JPY has managed to fall below 107.47 .This is indicated from the candle sticks chart below; OANDA Web Trading Platform (1).png   From the candle sticks chart above, there is point A  which is located along  the moving average and point B located along the RSI curve. Although the market has been bearish most of the time, we can use the concept of RSI and moving average to predict the direction of the market for the remaining time. Using the concept of RSI, the market is normally considered to be oversold when the RSI falls below 30 and overbought when the RSI rises above 70. At point B, the RSI has fallen below 30 thus an indication of an oversold condition at that point. Although the market today has managed to fall below 107.40, we can decide to follow the concept of RSI and enter a buy position because at below 30, that is an indication of an oversold market condition thus the market will start an upward trend.   Using the concept of moving average, the market is considered to experience a reversal trend if the price rises above the highest high of moving average or falls below the lowest low of moving average.At point A, the price has fallen below the lowest low of moving average thus an upward reversal trend has started to take place. Although today the market has decided to fall below 107.40, we can decide to follow the concept of moving average because the price has fallen below the lowest low of moving average and enter a buy position . Here is how our trading idea for buy market today looks like;   BUY               TP                   SL 107.400          107.800           107.000


quintomudigo
quintomudigo

Trader, Blockchain Technologist and Contentpreneur. Also founder and CEO @ Teacher Forex School.


Teacher forex school
Teacher forex school

Teacher forex school provides individual with training regarding to forex trading and cryptocurrency trading. We also share trading ideas online for both crypto and forex market

Send a $0.01 microtip in crypto to the author, and earn yourself as you read!

20% to author / 80% to me.
We pay the tips from our rewards pool.