170# Forex Trend Wave with RSI

Submit by Dimitri 2024

This trading strategy leverages the Forex Trend Wave Market Times Indicator alongside entry and exit rules based on color changes in painted bars. The method involves trading within the UK and US sessions, using color cues on the chart to enter and exit trades. For better accuracy and trend confirmation, this strategy also includes a filter indicator for improved decision-making.

Key Components of the Strategy

Trading Sessions:
- UK Session: 3:00 AM to 8:00 AM EST (indicated by a dark green box).
- US Session: 8:00 AM to 12:00 PM EST (indicated by a light green box).
- The colored boxes on the chart help visually separate the UK and US sessions, marking the high and low points within each session.
Entry Rules:
- Begin looking for trade setups at the start of each session. The optimal entry time is typically within the first 30 to 90 minutes of the session opening.
- Avoid trades near the session close, as price reversals are more likely near the end of each session.

Trade Setup Based on Painted Bars:
- Buy Signal:
  - Wait for painted bars to transition from Red to Gold to Blue.
  - This color sequence indicates a bullish trend and signals a potential buy entry.
- Sell Signal:
  - Wait for painted bars to transition from Blue to Gold to Red.
  - This color sequence indicates a bearish trend and signals a potential sell entry.

High-Risk Entries:
- If the bars transition directly from Blue to Red or Red to Blue with no Gold bars in between, this signals a rapid trend shift.
- While these setups can be traded, they are higher-risk entries due to the lack of gradual trend development. These should be approached with caution, especially if the broader trend is unclear.
Filter Indicator for Confirmation:
- To increase the accuracy of entries, add a Relative Strength Index (RSI)) to filter out low-quality trades.
- RSI Filter (period 9): Use an RSI with levels set at 45 and 55. Only take buy entries when RSI is above 55 and sell entries when RSI is below 45, filtering out trades against the stronger trend.
- For greater precision I added the optional chandelier exit as trend filter.