MTB Pro – Relative Strength Index – Fade Tactic

Relative Strength Index (RSI) – Trading Decision Point Fade Entry Tactic

Fade trading is all about “buying low and selling high”. The expectation is for the ENTRY LEVEL Decision Point to contain market momentum and the integrity of the price level to remain intact. The question on a fade strategy always centers around the validity of an inflection point; “will the level hold”? This will always be an “unknown fact”, so the assumption is that the entry point has been properly qualified as a market structure point and is in alignment with price action.

The RSI or similar type oscillators can provide good insight into the timing of a fade strategy with either an overbought / oversold / or divergence measurement.

Chart 1: 5-Minute Chart with MTB Pro Trading Decision Points and Relative Strength Index (RSI).

RSI Fade Tactic

Chart 2: 5-Minute chart.  As price action approaches the MTB Pro Trading Decision Point the RSI becomes overbought.

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MTB Pro
MTB Pro is the premium membership service for mytradingbuddy.com Members Receive 5 Trade Plans Every rading Day on EURUSD GBPUSD USDJPY ES & CL Futures with our Very Own Unique Trading Decision Points and on going Education on Entry techniques to Trade them
MTB Pro

MTB Pro

MTB Pro is the premium membership service for mytradingbuddy.com Members Receive 5 Trade Plans Every rading Day on EURUSD GBPUSD USDJPY ES & CL Futures with our Very Own Unique Trading Decision Points and on going Education on Entry techniques to Trade them

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