R3 Trading Strategy for H4 Timeframe Originally designed by | Forex Strategies VIP🎖

R3 Trading Strategy for H4 Timeframe

Originally designed by Larry Connors for daily charts, we've adjusted the R3 Trading Strategy to work on a H4 timeframe. This mean-reversion strategy primarily uses the 2-period Relative Strength Index (RSI) to identify high-probability trades following the overall trend direction.

Entry Criteria:

Buy signal: The market price is above the 200-day moving average, the 2-period RSI has been falling for three consecutive H4 candles, with the RSI value already below 60 on the first candle of the decline, and the actual 2-period RSI closes below 10.
Sell signal: The market price is below the 200-day moving average, the 2-period RSI has been rising for three consecutive H4 candles, with the RSI value already above 40 on the first candle of the rise, and the actual 2-period RSI closes above 90.
Exit Criteria:

Close a long position when the 2-period RSI closes above 70.
Close a short position when the 2-period RSI closes below 30.

Pairs: USDJPY, EURAUD, AUDCAD