VMJ EDUCATION

THE PAYAPA STRATEGY – 15 MINUTES CHART

Use the RSI (Relative Strength Index) oscillator and moving averages to get signals and
identify trend reversal.
RSI is used to identify the overbought and oversold zones of the market with the below
levels:
10 level – Oversold zone (strong buy)
50 level – mid level (Wait)
90 level - overbought zone (Strong sell)
Moving averages are used to measure market momentum:
- When all moving averages meet and “bend” at the 90 level it’s a strong sell
- When all moving averages meet and “bend” at the 10 level it’s a strong buy
The 50 level (wait) is used in conjunction with the 200 EMA for support and resistance.
i.e. based on the direction of the trend, you can either buy or sell as the moving averages
bounce off on the 200 EMA.
See below figure/picture regarding the above and labelled entry zones as the moving averages bend
at overbought and oversold zones for confirmations.

PAYAPA SETTING
RSI SETTINGS = Period – 14. Levels – 10 – 50 – 90
EMA SETTINGS = 5 Exponential Moving average (own colour)
8 Exponential Moving average (own colour)
200 Exponential Moving average (own colour)
13 Exponential Moving average (own colour)
21 Exponential Moving average (own colour)
To insert PAYAPA on a PC MT4 – i.e. EMA settings and RSI in one window below the chart;
Open your mt4; insert RSI - PERIOD 14. Go to “View” – Navigator – Indicators, Trend, and
click and drag moving average into the RSI window 5 times with the above EMA SETTINGS
numbers.
On a pop up window after click and drag; - under “APPLY TO” - Select “FIRST INDICATOR’’S
DATA”. (apply this to all five required EMA setting)
When finished, double click each/all five EMA’s on the RSI window again for a pop up
window... Under the “APPLY TO” and change it back to/Select “CLOSE”.