In this review we will look at the "Right Moment" indicator strategy. It is based on identifying and using overbought and oversold zones in trading. How to set up the indicators, and buy and sell using the strategy – find the answers to these questions and examples in our article.
The "Right Moment" strategy is mainly designed to be used in a flat, sideways market movement. It requires the price to be in a limited sideways range for at least a week.
The strategy is based on signals from the Bollinger Bands trend indicator and two oscillators - Williams' Percent Range and Relative Strength Index (RSI). It can be used for trading different financial instruments. The recommended time frames are M15 and H1.
The "Right Moment" uses overbought and oversold zones to search for trading signals. They describe short-term extreme deviations of market instrument prices from average values: overbought - too high, oversold - too low. These zones are identified by the Williams' Percent Range and RSI oscillators.
Complementing the strategy is the use of the rebound of quotations from the outer limits of the Bollinger Bands indicator channel, which act as dynamic support or resistance levels. These boundaries serve as a reference point for opening and closing positions according to the strategy. The combined use of the signals of the three indicators is designed to help find promising trades in the market.
To search for trading signals using the "Right Moment" strategy, you need to install three indicators - Williams' Percent Range, Relative Strength Index and Bollinger Bands - on the chart of a financial instrument. In popular MT4 and MT5 trading platforms, you can install indicators on the chart through the main menu: Insert / Indicators.
In their settings window, select the following options
The conditions for opening a buy position:
The conditions for opening a sell position:
The "Right Moment" trading strategy is based on the signals of three popular indicators - Bollinger Bands, Williams' Percent Range and Relative Strength Index (RSI). The transactions are based on the use of overbought and oversold zones of the oscillators, as well as the reversal of quotes from the borders of the Bollinger Bands price channel.
This strategy is versatile enough to be used on a variety of trading instruments and time frames. Before using it in real trading, it is advisable to test the performance of this strategy on historical data using a demo account.
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By: Victor GryazinTitle: How to trade the Right Moment strategySourced From: blog.roboforex.com/blog/2022/12/02/how-to-trade-the-right-moment-strategy/Published Date: Fri, 02 Dec 2022 15:57:36 +0000