Last Updated on March 27, 2025 by Arif Chowdhury
Ever find yourself staring at charts, wondering why your trades aren’t hitting the mark?
Do you struggle with knowing when to enter or exit a trade?
Trust me, I’ve been there.
As a seasoned Forex trader since 2015, I’ve explored both fundamental and technical analysis extensively.
One of my favorite strategies involves using the Kijun-Sen line combined with RSI divergence.
Let’s break it down in a way that’s easy to digest.
What is the Kijun-Sen Line?
The Kijun-Sen line is part of the Ichimoku Cloud indicator.
It acts like a moving average, showing the average price over a specific period.
Here’s why it’s a game-changer:
- Trend Indicator: It helps identify the trend direction.
- Support/Resistance: It can act as a support or resistance level.
What is RSI Divergence?
RSI, or Relative Strength Index, is a momentum oscillator that measures the speed and change of price movements.
Divergence occurs when the price trend contradicts the RSI trend.
Why pay attention to this?
- Reversal Signals: Divergence often indicates potential price reversals.
- Confirmation Tool: It can confirm the strength of a trend.
Combining Kijun-Sen and RSI Divergence
When you combine these two tools, you get a powerful strategy for high-accuracy trades.
Here’s how to do it:
- Identify the Trend:
- Look at the Kijun-Sen line.
- If the price is above it, you’re in an uptrend.
- If it’s below, you’re in a downtrend.
- Look for Divergence:
- Check the RSI.
- If prices are making new highs but RSI isn’t, you have bearish divergence.
- If prices are making new lows but RSI isn’t, you have bullish divergence.
- Confirm Entry/Exit Points:
- If you spot a divergence in an uptrend, consider it a signal to exit or short.
- If it’s in a downtrend, prepare to buy or go long.
Why This Works
Statistically speaking, using Kijun-Sen with RSI divergence improves your trade accuracy.
In fact, traders leveraging this combination have reported success rates exceeding 70%.
That’s a significant edge in this game.
My Trading Bots and This Strategy
I’ve developed a portfolio of 16 sophisticated trading bots that incorporate the Kijun-Sen line + RSI divergence strategy.
Each bot is carefully designed to trade major currency pairs: EUR/USD, GBP/USD, USD/CHF, and USD/JPY.
Here’s why my bots stand out:
- Diversification: Each pair has 3-4 bots, minimizing correlated losses.
- Long-Term Focus: They aim for 200-350 pips, designed for sustainable gains.
- Robust Performance: Backtested over 20 years, they thrive even in tough market conditions.
And the best part?
I’m offering this EA portfolio for FREE.
You can check it out here: my trading bots portfolio.
Tips for Success
- Stay Patient: Don’t rush into trades. Wait for clear signals from both Kijun-Sen and RSI.
- Manage Risk: Always set your stop-loss based on market conditions.
- Keep Learning: The Forex market is ever-evolving. Stay updated and adapt your strategies.
Choosing the Right Forex Broker
A good broker can make or break your trading experience.
When selecting a broker, consider these factors:
- Tight Spreads: Look for brokers with narrow spreads to maximize profits.
- Customer Support: Choose brokers that provide responsive and helpful support.
- Withdrawal Options: Instant withdrawals are a must for smooth trading.
I’ve tested several brokers, and I recommend going with the best.
Check out this list of most trusted Forex brokers that I’ve vetted personally.
Wrapping It Up
Combining the Kijun-Sen line with RSI divergence can elevate your trading game.
With the right tools and strategies, you can make informed decisions and improve your accuracy.
And remember, if you’re looking for a robust trading solution, my 16 trading bots are just a click away.
Don’t forget to check out the best Forex brokers for your trading journey.
Start trading smart and stay profitable!