RSI + MACD Trading Challenge

Monday: Launch of the Challenge

Today's mission: Understanding RSI and MACD divergences
Today, we're going to lay the foundations by defining what divergences are and why they're useful in trading. You'll learn to distinguish between bullish and bearish divergences, and to understand what they mean.

Tasks to be performed :

1. Reading and Podcast :
   • Read a detailed article on how to detect RSI and MACD divergenceswith concrete examples.
   • Listen to a podcast that shows you how to integrate discrepancies into your overall strategy.
2. Configure your graphics :
   • Add the RSI and MACD to your trading platform (MT4, TradingView, etc.).
   • Familiarize yourself with the standard parameters: RSI (14) and MACD (12, 26, 9).
3. Observation:
   • On two assets of your choice (for example, EUR/USD and BTC/USD), identify recent divergences on the H1 and D1 charts.

Tuesday to Thursday: Analysis and Application

Three-day mission: Identify divergences and draw up a strategy

Tuesday: Identify bullish and bearish divergences

Today, we're going to focus on detecting classic and hidden divergences on the RSI and MACD.

Tasks to be performed :

• Identify at least two bullish divergences on your charts: when the price marks lows, but the RSI or MACD forms highs.
• Identify two bearish divergences: when the price marks highs, but the RSI or MACD forms lows.
• Record these discrepancies in a diary with screenshots to analyze their frequency and reliability.

Wednesday: Developing a strategy based on differences

Today, you'll develop a strategy that combines divergences with other confirmatory signals.

Tasks to be performed :

• Combine divergences with support/resistance levels or Japanese candle patterns to validate your entries and exits.
• Test two scenarios: a bullish entry based on a bullish divergence near support, and a bearish entry based on a bearish divergence near resistance.
• Develop clear criteria for defining your stop-loss and take-profit targets.

Thursday: Backtesting and adjusting your strategy

Today, we're going to test your knowledge with historical data to validate your strategy.

Tasks to be performed :

• Backtest the last few weeks to check the effectiveness of the divergences detected.
• Analyze the trades that worked and those that didn't, identifying the factors that influenced the results.
• Adjust your parameters or confirmation criteria if necessary.

Friday: Final Practice

Mission for the day: Execute trades based on RSI and MACD divergences
Today, you'll put what you've learned into practice by executing real trades or demo accounts based on divergences.

Tasks to be performed :

• Spot a bullish divergence and a bearish divergence on two different assets, and use them to open positions.
• Respect the criteria defined in your strategy, in particular by using stop-loss and take-profit limits.
• Record your observations on the evolution of trades in your diary.

Saturday: Review and Adjustments

Today's mission: Analyze results and refine your strategy
Today, we're going to analyze the trades you made on Friday and consider the adjustments you need to make to improve your performance.

Tasks to be performed :

• Review your trades and identify what worked and what can be improved.
• Analyze the discrepancies used: were they reliable? Did you meet your confirmation criteria?
• Adjust your strategy according to the results, for example by modifying your stop-loss levels or reinforcing your confirmation signals.

Sunday: Taking stock and sharing

Today's mission: Take stock and share your results
To close this challenge, we're going to reflect on your week and share your experiences with the community.

Tasks to be performed :

1. Summary :
   • Write a summary of your week, describing the results achieved, the challenges encountered and the lessons learned.
   • Think about the reliability of RSI and MACD divergences in your analyses.
2. Share :
   • Share your results and thoughts on social networks. Use the hashtag #xenesy and tag @xenesy_project to chat with other traders about their experiences with divergences.

Conclusion

This challenge on RSI and MACD divergences has enabled you to deepen your technical trading skills. These tools, when properly understood and integrated into a solid strategy, can provide invaluable opportunities to anticipate market movements. Keep practicing, refine your approaches and remember that the key lies in patience and discipline.

Good luck to you all, and see you soon for a new challenge on the financial markets!