Thread: News trading with RSI: strategy for EUR/USD in key events

I want to share an important observation: when the crossing of the RSI occurs very close to the event, the system loses reliability. Ideally, it has passed at least 30 minutes before the announcement. This avoids operating in artificial over-purchase or over-sales zones. When the market enters "wait" mode, the movements of the RSI can be false. If you see that the crossing is very recent and the market is flat, you better not enter. Sometimes the best operation is the one you do not do. This system also requires knowing when to stay out.

Some ask if this can be applied to GBP/USD or USD/JPY. Technically yes, but you lose accuracy. EUR/USD is the most liquid pair and reacts cleaner to key news. If you go to other pairs, you must first validate if the behavior is similar. In my tests with GBP/USD the results were more erratic. There is more noise from high volatility and movements do not follow the logic of the RSI pre-news so clearly. If you want to test it in other pairs, do it in demo and register everything before risking real capital.

I see some of you are late and still expect the system to work the same way. If you�ve already passed the optimal time of entry, what you�re doing is lottery. Don�t confuse strategy with momentum. Entry is as important as direction. It�s like wanting to get on a train that�s already leaving the station: you may still reach it, but you may also be hanging on the platform. Be punctual, follow the plan, and if you miss it, wait for the next chance. There�s always another one.

I have received several queries as to whether this method can be applied in side markets. The answer is no. This system needs an excuse to move the market, and that gives it powerful news. In consolidation or narrow ranges, the RSI does not offer valid signals. Insisting on trading in those conditions is wasting capital and energy. For side markets there are other approaches: this is not one of them. Here we only seek action, movement, rupture, impulse. If there is no such thing, we better not touch anything.

A recommendation that can help a lot: use a timer or alarm just when you start the two hours before the event. So you won't have to do mental calculations about whether it's been 100, 120 or 140 minutes since the RSI crossing. Small details like this greatly improve the accuracy of your tickets. Technical trading requires concentration, but also organization. If you reduce silly mistakes, you increase your success rate. And in this system, time is everything.

The system does not need sophisticated indicators or payment tools. Only the RSI and your attention. Simplicity is one of its strengths. Don�t be fooled by those who say that without a $1,000 setup you can�t win. Here what you need is discipline and tracking to the letter. You don�t need 20 indicators or three screens. One window, RSI(14

I have noticed that there is a confusion between the crossing and the breakout. They are different things. The crossing refers to the passage of the RSI over the levels of 30 or 70. Breakout is when that crossing is maintained and does not return for a certain period. The important thing is not only that it crosses, but when it did, and whether it has crossed again or not. That information defines the entry. So please do not operate just because you see the RSI in 72. Check the entire temporal context before pressing the button.

Today was one of those days where the system simply does not give clear signal. The RSI crossed 30 but then stayed between levels for more than two hours before the event. There was no confirmation to get into any sense. And that�s fine. Not all sessions have opportunities. Part of professionalization in trading is knowing when to stay still. Force operations where there is no structure is safe recipe for losing money. Learn to wait.