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PAYAPA
PAYAPA
SETTING UP PAYAPA
• RELATIVE STRENGHTH INDEX (RSI)
Period: 1
50 Description – Wait
90 Description – Sell
• MOVING AVERAGE
1. Period: 5
Shift: 0
Method: Exponential
Apply to: Close
Style: 1-pixel yellow color
2. Period: 8
Shift: 0
Method: Exponential
Apply to: Close
Style: 1-pixel blue color
3. Period: 200
Shift: 0
Method: Exponential
Apply to: Close
Style: 2-pixel red color
4. Period: 13
Shift: 0
Method: Exponential
Apply to: Close
Style: 1-pixel white color
5. Period: 21
Shift: 0
Method: Exponential
Apply to Close
Style: 1-pixel purple color
YOUR CHART SHOULD LOOK LIKE THIS:
With this strategy the Relative Strength Index (RSI) and the Moving Averages (EMAs or Exponential Moving Averages)
are used to help us get signals for trend reversals.
The reason we use RSI is to get the “overbought” and “oversold” momentum. The 200EMAs is used as the support and
resistance when the market is at Level 50. You either sell or buy when the EMAs bounce off the 200EMA.
• The chart below shows the overbought momentum EURJPY pair on M15 chart.
As you can see, all the EMAs have reach Level 90 and began changing direction (down trend). This means the
pair has lost its buy momentum and the sellers have taken over.
• The chart below shows the oversold momentum EURJPY pair on H1 chart.
As you can see, all the EMAs have reach Level 10 and began changing direction (up trend). This means the pair
has lost its sell momentum and the buyers have taken over.
Down trend, trend reversals when all the EMAs are at Level 50
PLEASE PRACTICE ON DEMO ACCOUNT FIRST TILL YOU MASTER PAYAPA. THIS STRATEGY BEST
WORKS ON LOWER TIME FRAMES AND IS VERY GOOD FOR SCALPING BUT CAN BE USED ON
HIGHER TIMES FRAMES.