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Saturday, June 19, 2021

EMA, RSI, Trading System

Timeframe: 1-hour.
In this system, we use 3 indicators:
1. 5-period Exponential Moving Average (EMA 5) applied to the Close.
2. 12-period Exponential Moving Average (EMA 12) 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 12 to the
upside… AND our RSI 21 > 50.

Exit Rules for Long Trades:
Exit the trade when EMA 5 crosses back below EMA 12
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.

Entry Rules for Short Trades:
Enter short when EMA 5 crosses EMA 12 to the downside.
AND RSI 21 < 50.
Stop loss = 20 – 30 pips… 

Exit Rules for Short Trades:
Exit our short trade when EMA 5 crosses above EMA 12
OR RSI 21 > 50
In the pictures below EMA, RSI, Trading System in action.

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

https://image.jimcdn.com/app/cms/image/transf/none/path/s2e2ea4a9b3965dd1/image/i7cef8fd662817e9e/version/1328368312/image.gif

https://image.jimcdn.com/app/cms/image/transf/none/path/s2e2ea4a9b3965dd1/image/i27a121af62187ab6/version/1328368355/image.gif





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