EMA + RSI Simple System
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Thread: EMA + RSI Simple System

  1. #1
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    EMA + RSI Simple System

    this is a simple strategy:

    we will be using 4 EMA and 1 RSI

    use GBP/USD or other volatile pairs like UJ or EJ

    use time h1 or above

    setup your charts as follows:

    1. place EMA 80 (Red), EMA 21(Blue), EMA 13 (Purple) and EMA 5 (Yellow)
    2. place RSI 21 on the chart with a level set at 50.

    explanation of the strategy:

    the EMA 80 is the strongest in this system and it indicates the long term trend direction of the pair. when price goes above EMA 80, it implies and uptrend and when it is below the EMA 80, it implies a down trend. the EMAs 21 and 13 gives us the current tredn direction. if the EMA 13 is above the EMA 21, the current trend is bullish and if the opposite happens, the current trend is bearish. the RSI 21 value below 50 indicates a bullish market while under 50 indicates a bearish market.

    - - - Updated - - -

    when to BUY

    we open a BUY position when the following rules have been met by the system

    1. EMA 5 crossed above a channel of EMA 13 and EMA 21 in a bullish market
    2. RSI 21 goes above 50
    3. Both EMA 21 and EMA 13 are above EMA 80

    we close our BUY positions when:

    -EITHER EMA 5 crossed below EMA 13 and EMA 21
    -OR when the RSI goes below 50

    if any of these above rules are met, we should close our long positions immediately.



    in this example above, we are going to buy the EURUSD and we are using the H1 chart. we see that the EMA 13 and the EMA21 are staying above the EMA80. this is a signal that the market is trending up. the EMA5 also stays above EMA 13 and EMA21. however, at the same time, we are seeing the RSI21 going above the 50 level, so we OPEN our long position and we buy EURUSD. we exited this trade when the EMA5 cuts below the EMA13 and EMA21 and we booked around 200pips on this one.

    - - - Updated - - -

    when to SELL

    we open a SELL position when the following rules have been met by the system

    1. EMA 5 crossed below a channel of EMA 13 and EMA 21 in a bearish market
    2. RSI 21 goes below 50
    3. Both EMA 21 and EMA 13 are below EMA 80

    these are the sell entry rules that we should be watching for our strategy. As you might have noticed, these rules are the exact opposite on the buy rules. Now we need to look at the Exit for the short positions.

    we close our SELL positions when:

    -EITHER EMA 5 crossed above EMA 13 and EMA 21
    -OR when the RSI goes above 50

    if any of these above rules are met, we should close our shorts positions immediately. Again, we see that the sell exit rules are the exact opposite of the buy exit rules.



    in the example above, we are going to sell the EURUSD and we are using the H1 timeframe. We can see that the EMA 13 and EMA21 are staying below the EMA80. This signal is an indication that we have a downtrend in progress. The EMA5 also stays below the EMA13 and EMA21. At the same time, we see that the RSI also dropped below the 50 level thus confirming our downtrend, so we open our short position right here. This signal turned out to be a good one if we had taken it, we would have booked around 200pips.

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    Last edited by taharoyal52; 08-25-2013 at 03:08 PM.

  2. #2
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    Thanks a lot. EMA + RSI using combinely can give pure good filtered results but that doesnt mean you should not place stop loss at all. So i liked your strategy as it has a stop loss. Good efforts in sharing ! Thanks once again.

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  3. #3
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    trading with moving average very important and consider the strongest strategy but we must use many indicators to know the direction the two indicators RSI and MACD we can use it as devreng because if we have two up top or down top we can use it to buy or sell but after draw line on the indicators and the candle

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  4. #4
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    wow that's fantastic my dear friend I am just checking with your setting on my charts this forum is very powerful to all of us guys I am watching first time this strategy friend let me check about that now Hope it will help everyone here in this group and we will enjoy our trading with that

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  5. #5
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    Quote Originally Posted by Khimi234 View Post
    wow that's fantastic my dear friend I am just checking with your setting on my charts this forum is very powerful to all of us guys I am watching first time this strategy friend let me check about that now Hope it will help everyone here in this group and we will enjoy our trading with that
    Hi! How are you friend?
    Please share us the results you are getting with this strategy. Hope you have tested it ?
    I am waiting for your reply because for me, its working fantastic on daily basis. And need to know about you and others who are using it or ever backtested it ?
    Please reply.

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  6. #6
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    Hello mr taharoyal52, how are you?.
    I see a lot of shared trading strategies from you, but do you employed all of them in your real trading, bro?. Perhaps they won't annoying you because i knew you are senior trader here. Need to know the new strategies from you, bro.

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  7. #7
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    I use something similar, and it can be found on the name "ema cut " strategy, I am using 5 ema-s and rsi. My targeting goal is 5 pips, and my stop loss is 25 pips. I am using this on one hour time frame , on gbp/usd and eur/gbp, but you can try in other pairs.I found this strategy before 3 years, and some time it was good performance using this system, but not all the month.

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  8. #8
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    Rsi indicator is very good technical indicator because you can find where can be top and bottom but many traders do not know use this indicator or use this indicator on smalltime frame charts and than they have bad results. but I use this indicator all the time with any currency when I work

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  9. #9
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    Quote Originally Posted by Ema10 View Post
    I use something similar, and it can be found on the name "ema cut " strategy, I am using 5 ema-s and rsi. My targeting goal is 5 pips, and my stop loss is 25 pips. I am using this on one hour time frame , on gbp/usd and eur/gbp, but you can try in other pairs.I found this strategy before 3 years, and some time it was good performance using this system, but not all the month.
    i know that this trading system is better when used in 15 and 30 minutes charts. It is mainly a system that is used to scalp the trading market and i do not think it is good enough to be used as a main trading strategy, it should only be used once in a while and not every single day.

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  10. #10
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    Quote Originally Posted by jonking View Post
    i know that this trading system is better when used in 15 and 30 minutes charts. It is mainly a system that is used to scalp the trading market and i do not think it is good enough to be used as a main trading strategy, it should only be used once in a while and not every single day.
    No! Its not a kind of strategy which we should only use once in a while. I have backtested this strategy and then i have shared here. I have backtested for a month, and the result was very very good as compared to trading blindly or nakedly. So we are in net profit and net positive pips by the end of the month with this strategy. We need to put dedication and concentration on this strategy.

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