Skip to content Skip to sidebar Skip to footer
Home / STRATEGY TRADING

Best, Simple Trading Strategy with Moving Average and RSI

Post a Comment

 This article discusses an effective trading strategy that combines two popular indicators: Moving Average (MA) and Relative Strength Index (RSI). This strategy has been extensively tested and proven to provide good results.

Choice Indicator

Moving Average (MA):
    • Use three MAs with different periods: 21 EMA (Exponential Moving Average), 13 EMA, and 9 EMA.
    Relative Strength Index (RSI):

      • Use 5 periods for RSI.
      After adding both indicators, you will see three MA lines and one RSI line on your trading chart. Customize the indicator color according to your preference.


      Proper Entry Point

      Buy (Higher):
      • Wait for the three MA lines to cross each other downwards.
      • Make sure the price is at least 1-2 candles below the third MA line (shortest period).
      • Confirm the buy signal with the RSI indicator which is in the oversold area (usually below 30).
      Sell ​​(Lower):
      • Wait for the three MA lines to cross each other upwards.
      • Make sure the price is at least 1-2 candles above the third MA line (shortest period).
      • Confirm the sell signal with the RSI indicator which is in the overbought area (usually above 70).
      • Recommendations for use
      Recommended Use
      • Use a 1 minute timeframe.
      • Choose a currency pair with a volatility of at least 80%.
      Disclaimer
      This strategy is for education only and is not an investment recommendation. Always do research and manage risks well before trading.

      Post a Comment for "Best, Simple Trading Strategy with Moving Average and RSI"