Replies to post #25294 on FOREX TRADERS

[Worn_Buffet]

josy....meant ta reply to ya when I saw your post the other day...indeed your style & mine sound quite similar if not the same....good stuff. I've been having fairly consistent success w/it for almost 18 mos now.

Check out usd/chf....just went long there as well....that chart sure is lookin ripe for our strat....a 146 move to the south...albeit from a lil over 2 hrs ago now....a lil longer than usual as far as time frames go but then again I'm only lookin for 30 or so....from .1603 to .1631 or thereabouts.

Lookin forward to hearin how someone else who uses the same strat does....so by all means, pull up a chair & stay awhile...welcome aboard & GLTY as well.

Cheers!

[daiello]

That's the "catch the falling knife" approach. The problem I came across using RSI and STO was that, even at way oversold levels, it could and would go lower.

The problem with those indicators is that they are based on price, so that means if the currency is trading sideways, the RSI and STO will start to turn up, regardless of the price. So before you know it, RSI is back in the 40s/50s and the price barely went up, only to go down lower and hit single digit in the RSI again.

Just my opinion, not knocking your strategy but that's what I came across.