The topic of this week’s Forex Video covers how to use MACD and RSI with the Daily Trading Bias.
This week’s FREE Bias pick was for Gbp/Usd, and in the video that I released along with the pick, I showed how traders could use the FREE Bias to enhance their trading strategies. Gbp/Usd this week traded as expected and provided both BZ members and members of the FREE Trading Bias great trading opportunities. Some of the other trading methods that I described where MACD and RSI based.
How To Use MACD And RSI With The Daily Trading Bias
Using the Macd indicator traders had multiple opportunities to trade Gbp/Usd the First would have been a divergence type of set-up. The second trading opportunity would have been using the MACD cross. The MACD cross is when the fast line crosses above or below the slow line. This week the Bias was bearish so traders should have focused on selling opportunities by looking for a bearish cross.
Trading with the RSI indicator is another very popular indicator among traders. RSI can also be used to find trading opportunities using divergence. Divergence is when price makes a new high, and the RSI indicator fails to make a new high. This is called a bearing divergence. A Bullish divergence is when price makes a new low, and the RSI indicator makes a higher low. Most traders start out using the RSI indicator as a simple overbought or oversold indicator. How traders interpret, this is by looking for selling opportunities when the RSI is above 70 and looking for buying opportunities when the indicator is below 30.
How To Use MACD And RSI With The Daily Trading Bias Video