Is this the way you currently trade? Also, what are the signals? Wait for overbought or oversold condition, and a change of color by the moving average?
I have a few different trading methodsā¦ mainly Currency Strength strategiesā¦ but from time to time I use a CCI based Indicator similar to the Charts above. Just got to keep the Charts simpleā¦
The strategy is simple RSI 101, Indicator breaks below 70 from above SELL, breaks above 30 from below BUY.
With this setup Iād be entering long on the Green using the ATR for a TP (ie: I would have closed out at 130 pips) and then enter again on the next Red Signalā¦and obviously visa versaā¦
Just apply your entry & exit logic (Original Post). Anytime the EMA and the RSI have moved above the 50 Look to go long, below the 50 look to Short. Check the 4H for market direction and trade the 1H TFā¦Try it on a Demoā¦only real way to know if it suits your way to tradeā¦
I normally use a WMA as it gives a little sharper signal (with more fakeouts) allowing a few more pips each tradeā¦
These two Indicators used in this way give you a pseudo MACD Indicatorā¦
The two methods youāve listed go in contrast. Going long when RSI crosses the 50 level, and going long when RSI comes out of oversold, are two vastly different things.
If the RSI is coming up out of Oversold (crossing above the 30 from below)ā¦ your looking for a Buy opportunity (Green EMA)ā¦ if the RSI crosses above the 50 from below it is confirming strength in the move up and you should be holding the Buy or looking to Buy (Green EMA).
See example above
Understood. Thanks for the clarification. I still donāt understand how your are using the moving average on the RSI: do you wait for it to change color, or the cross of the 70 or 30 level is already enough? Plus, how do you get it to change color like that?
Change of colour & RSI x EMA parametersā¦ I coded this Indicator 12-18 months agoā¦ I got the idea from an Indicator I saw that was available for MT4/5 in MQL5 Market Placeā¦ I will try to find itā¦ Tippi? somethingā¦
I use either clean Charts or off Chart strategiesā¦Candles are chaotic and generate confusion.
As you can see aboveā¦
@giovannicali Below is a XAUUSD (15min) trade from from today (Mid Asian)ā¦
Clear signal, clear trade, clear profit (0.2 Lots) 587pipsā¦Current position (still open) is +300 pipsā¦ Same Indicator settings as shown RSI 14 / EMA Slope 10ā¦
Perfect RSI signal as it bounces off the 30ā¦ Price Action as a Hammer displays at the end of the trendā¦
Stop Losses are not added to Chart, the position will close when the RSI crosses below the EMAā¦ I donāt feel the need to give my Broker something to aim atā¦
RSI Cross shows change of trend, EMA Colour change is confirmation to open positionā¦
Closed with 240+ pipsā¦ 2 Trades in 6.5 Hoursā¦800+ pipsā¦on the 15min TFā¦Live
Closed (2 mins ago) with 725 pipsā¦3 Trades in 12 Hoursā¦1500+ pips on the 15min TFā¦Liveā¦
No Mumbo Jumboā¦ just easy clear signals from the Oscillatorā¦
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Hi @anon5343843ā¦Yep, correct, but donāt be afraid to change the values slightly to get the clearest signal from the Indicatorā¦ie: RSI 20 / WMA Slope 8 etcā¦
Each pairs behaviour, time frames etc. will require slightly different settings.
Unfortunatelyā¦these concepts are an absolute waste on most here as shown in this threadā¦
Have replied to your PMā¦ Cheersā¦ Hope this is of helpā¦
@Trendswithbenefits this is a challenge in MT4. Tried using the navigator, selecting the xlv4 for the color change ema10, and dragging it to the RSI 14 open indicator but it will only draw it on the chart. Any thoughts? Donāt mean to hijack or be a PITA.
Edit:
I should have kept reading ā¦ sorryā¦ thought I was up to date. I will look as well.
KC