EMA + RVI
Indicators:
Key conditions: the timeframe must be H1 or higher. Stop Loss is set at the nearest local extreme.
BUY conditions (all conditions must be met):
EMA (18) crosses EMA (28) from below to above.
RVI confirms the signal.
SELL conditions (all conditions must be met):
EMA (18) crosses EMA (28) from above to below.
RVI confirms the signal.
Exit criteria: exit the trade when a Stop Loss is triggered based on money management rules or when a reverse signal occurs.
Exercise:
Open a chart with the H1 timeframe or higher. Apply the EMA indicator twice, with settings (18, 0, close) and (28, 0, close). Add the RVI indicator with a period of 100.
Identify a BUY signal when EMA (18) crosses EMA (28) from below to above and the RVI confirms the direction. Enter a long position and place a Stop Loss at the nearest local low. Hold the trade until a Stop Loss is reached or a reverse SELL signal appears.
For a SELL signal, wait for EMA (18) to cross EMA (28) from above to below with confirmation from the RVI. Enter a short position and set the Stop Loss at the nearest local high. Exit the trade when a Stop Loss is hit or a reverse BUY signal occurs.
Last updated