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ADD Fair value gap condition to my RSI EA
Trading Strategy Overview
Buy Signal:
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RSI Condition:
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The RSI (5-period) on the 15-minute (M15) chart is below 20, indicating that the asset is oversold.
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Fair Value Gap Condition:
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The current price is within a Fair Value Gap on the M15, H1, H4, or D1 chart, indicating a potential imbalance that could be corrected IN ONE OF THE ABOVE TIMEFRAME
Sell Signal:
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RSI Condition:
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The RSI (5-period) on the 15-minute (M15) chart is above 80, indicating that the asset is overbought.
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Fair Value Gap Condition:
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The current price is within a Fair Value Gap on the M15, H1, H4, or D1 chart, indicating a potential imbalance that could be corrected IN ONE OF THE ABOVE TIMEFRAME
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Detailed Strategy
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Identify Fair Value Gaps (FVGs):
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Definition: A Fair Value Gap occurs when there is a significant difference between the buy and sell orders, leading to an imbalance. It is typically identified by a sudden price movement with minimal trading in between.
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Timeframes to Monitor: M15 (15-minute), H1 (1-hour), H4 (4-hour), and D1 (1-day).
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RSI Calculation:
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Use a 5-period RSI on the 15-minute chart to identify oversold (below 20) and overbought (above 80) conditions.
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Entry Criteria:
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Buy Entry:
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Ensure the RSI (5) on the M15 chart is below 20.
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Confirm the current price is within a Fair Value Gap on any of the following timeframes: M15, H1, H4, or D1.
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Enter a buy position when both conditions are met.
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Sell Entry:
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Ensure the RSI (5) on the M15 chart is above 80.
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Confirm the current price is within a Fair Value Gap on any of the following timeframes: M15, H1, H4, or D1.
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Enter a sell position when both conditions are met.