108# EMA's and RSI Forex Trading System
Submit by Joker 20/11/2012
Time Frame H1 or higher
Currency pairs: any
- RSI (21)
80 EMA indicates a major trend direction. When the price goes above 80 EMA, it implies an
uptrend and if it goes opposite – downtrend.
• 21 EMA and 13 EMA give us a current trend direction.
• While 13 EMA stays above 21 EMA – uptrend occurs.
• If 13 EMA stays below 21 EMA – downtrend
• RSI (21) value is above 50 suggest an uptrend, below – downtrend
Entry Rules for long trade
We enter a long trade (buy) when
• 3 EMA crosses 5 EMA upward in an uptrend market
• Both 3 EMA and 5EMA cross a channel of 13 and 21 EMA
• Both 21 EMA and 13 EMA are above 80 EMA
Exit Rules for long trade
We exit our trade when 3 EMA crosses below 5 EMA or RSI < 50
Entry Rules for Short Trade
We enter a short trade (sell) when
• when 3 EMA crosses 5 EMA downward in a downtrend market
• both 3 and 5 EMA cross the 13 and 21 EMA
• both 21 EMA and 13 EMA are below 80 EMA
• RSI is below 50.
Exit Rules for short trade
We exit our trade when 3 EMA crosses above 5 EMA or RSI > 50
Stop loss = 20 – 30 pips… depending on the volatility of the currency pair. For more volatile pair, like GBP/USD, stop loss = 30 pips. For less volatile pair, like EUR/USD, use stop loss of 20 pips. Next, I am going to show you a few sample trades to help you understand more clearly how to use this system
Buy Trade Example
a. EUR/USD 1 hour timeframe
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RSI Forex Strategies