BACK TO ARTICLES

Best 4 Hour Rsi Forex Trend Trading Strategy

This is a powerful trading strategy that works very well during strong market trends and can offer excellent rewards.

Most importantly, due to the accuracy of the indicators used and the conditions under which they are used, this strategy enables traders to enter only the best and strongest Forex trends out of which the best trading opportunities are filtered out and considered for taking a trade. It may not generate as many trades as other strategies, but trades which are generated are with a higher degree of accuracy.

It’s easy to implement and to use this strategy. It doesn’t require expert knowledge of the markets or extensive understanding of technical analysis principles. The strategy can be applied on all currency pairs with pretty much the same performance/results. It also works well on different timeframes, but the 4-hour chart has shown the most profitable results.

On the chart below, we show a real Forex example of how this strategy based on the FxTR Improved RSI indicator and two EMAs looks on the charts:

The entry is at the vertical line on the left, while the exit is at the vertical line on the right (yellow MA starts to slope upwards) - A short trade example that resulted in a profit of over 300 pips on the CHFJPY 4h chart

Indicators to be used:

Three indicators are needed to trade this strategy:

  • 30 period exponential moving average (yellow on the charts)
  • 60 period exponential moving average (blue on the charts)
  • The FxTR improved RSI indicator - Created by the Fx Trading Revolution Team, this RSI-based indicator is very effective in predicting longer-term trends

Download improved RSI indicator

Trading conditions and rules of the strategy:

Long trade entry :

  • Wait for the 30 period moving average (yellow) to cross above the 60 period moving average (blue)

Long trade stop loss :

  • Place stop below the 60 period moving average (blue)
  • Trail the stop behind the 60 period moving average as the market ascends higher

Long trade exit :

  • Hold trade for as long as the RSI shows a blue (bullish) signal
  • Close the trade if the yellow moving average starts to slope down
  • Or if the RSI turns bearish (red)

A long trade generated on the GBPCAD 4-hour chart - The entry signal is shown with the vertical line on the left and the exit signal is shown with the vertical line on the right

Short trade entry :

  • Wait for the 30 period moving average (yellow) to cross below the 60 period moving average (blue)
  • Ensure that two moving averages are sloping down
  • The 30 period moving average (yellow) is sloped down at an angle of 20 degrees or steeper – No exact measurement is necessary here, but a subjective estimate is good enough
  • Look for a red arrow to appear on the RSI indicator after the 3 criterions for the moving averages are satisfied
  • Once all of the above conditions are fulfilled, a short trade can be taken

Short trade stop loss ::

  • Place stop above the 60 period moving average (blue)
  • Trail the stop behind the 60 period moving average as the market descends lower

Short trade exit :

  • Hold trade for as long as the RSI shows a red (bearish) signal
  • Close the trade if the yellow moving average starts to slope upward
  • Or if the RSI turns bullish (blue

The sell signal is shown with the vertical line on the left and the exit signal is shown with the vertical line on the right - EURUSD 4-hour chart

Core principles to remember for this Forex trading strategy:

  • Trading signals from the RSI should be ignored if the conditions of the moving averages are not satisfied first. That is, for a bullish signal of the RSI to be valid the 30 period (yellow) MA should be above the 60 period (blue). For a sell signal from the RSI to be valid, the 30 period should be below the 60 period moving average. This significantly helps to filter out noise moves in the market and reduce whipsaw signals that will result in bad trades. Thus, the overall performance of the strategy and the final results are improved by a marked level just by using this specific combination of the indicators.
  • It is recommended to lock in some profits from time to time. It’s not always necessary to wait for an exit signal from the indicators to close a part of the position. Since this is a trend trading strategy, the exit signal generated by the RSI and moving averages will tend to eat into the profits to some degree. Using some leading indicators like Fibonacci retracements or support and resistance zones from higher (like the daily or weekly charts) can help you to lock in partial profits at key technical levels just in case if the market suddenly reverses. In this way, the trader still gets to keep some of the profits in such cases.
  • This strategy doesn’t use profit targets because it tries to capitalize on trends which can last for an undetermined time and distance on the charts. Hence, for a trending market environment, it’s usually better to just trail the stop behind the price instead of using fixed profit targets. Very often the profit targets are exceeded in trending markets so constantly using them can actually reduce the profits for the trader in the end.
TRADE NOW
BACK TO ARTICLES
$1,100,000 Trade to Win!
🏆 Trade on best conditions
🏆 Receive monthly coupons
🏆 $110K and 54 Winners
🏆 Everybody has a Chance
<< To Win >>
Trading Systems
Improved Moving Averages System
Moving averages are nowadays a standard on every trading platform, but only a few people can actually use them correctly. Our improved Moving Averages System not only eliminates a large number of false signals, but at the same time increases the chance of success several times over, and it is possible to trade even the longest trends the markets have to offer.

Try Fastest Order Execution

⭐ AI-powered trading platform
⭐ No commission and tight spreads
⭐ One app, 3800+ markets
⭐ Low spreads
⭐ High security: NBRB license
START NOW
Trading Systems
E+MA+CD - Professional Strategy
E+MA+CD is an exceptionally sophisticated forex trading strategy, whose main strength is the combination of the dynamics of moving averages together with the robustness of MACD. Thanks to this the strategy provides superior predictions that result in regular profits in the hundreds of pips. Of course, the high percentage of success of predicted signals is also a matter of course, without which this strategy would surely become just another ordinary strategy among many others.
Trading Systems
Price Action – enter with the third bump!
Currency pairs are among the most traded markets in the world today and there are many followers for each pair. But there are also opponents, which is why each currency pair has evolved differently over time. Of course, it is not only traders who influence the different developments, but also countries, banks and many other institutions. In addition to the fact that currency pairs develop quite differently in many cases, there are also situations in which they behave very similarly, and we will discuss one of these here today.
Trading Systems
Wedge trading strategy
The wedge strategy falls into the category of universal strategies, thanks to which traders can use it not only across time frames, but also across different chart types, including the very popular volume charts and the increasingly popular renko charts. The trading wedges have built up such popularity over time that they are now sought after by many scalping traders who usually base their very highly profitable trading strategies on them.
Trading Systems
GIMMEE Bar Reversal System: Fx Trading Strategy for Sideways Markets
The GIMMEE trading system can be especially effective if used in conjunction with other indicators and tools like we are going to show below. Although it is not necessary to use these additional tools, they should help to increase the probabilities for making a profitable trade. A GIMMEE bar is defined as one that pierces the upper or lower Bollinger Band but doesn’t break it and then instead retraces off it. You can see this candle formation in the charts below, where we show trade examples with this strategy. Next, as soon as such a GIMMEE bar appears, we take its height (the distance between its high and low) and note these levels. In the bullish case, we are looking for a breakout above the high of the GIMMEE bar, while for short (bearish) setups, we are looking for a breakout below the GIMMEE bar’s low. The other level you took note of is the stop loss for the trade.