Strategy EMA, RSI

Timeframe: 1-hour.

In this system, we use 3 indicators:

1. 5-period Exponential Moving Average (EMA 5) applied to the Close.

2. 13-period Exponential Moving Average (EMA 13) applied to the Close.

3. 21-period RSI (RSI 21)

Entry Rules for Long Trades:

It’s simple. We enter a long trade when EMA 5 crosses EMA 13 to the

upside… AND our RSI 21 > 50.

Entry Rules for Short Trades:

Enter short when EMA 5 crosses EMA 13 to the downside.

AND RSI 21 < 50.

Stop loss = 20 – 30 pips… depending on the volatility of the currency

pair. For more volatile pair, like GBP/USD, stop loss = 30 . For less

volatile pair, like EUR/USD, use stop loss of 20 pips.

Timeframe: 1-hour

Exit Rules for Long Trades:

Exit the trade when EMA 5 crosses back below EMA 13

Or when RSI 21 < 50.

Or when price stalls at major resistance, trendline, pivot points,

Fibonacci projection target.

Or when bearish engulfing patterns or inverted hammer patterns form.

Exit Rules for Short Trades:

Exit our short trade when EMA 5 crosses above EMA 13

OR RSI 21 > 50

In the pictures below EMA, RSI, Trading System in action.