146# Three exponential moving averages with RSI and MACD

Ema's crosses with RSI and MACD indicators

 

Submit by Buddy 04/08/2013

 

Time Frame: 60 minutes, H4, daily.

 Currency pairs: any.

 

 Forex indicators:

 13 EMA (exponential moving average);

 21 EMA (exponential moving average);

 55 EMA (exponential moving average).

 MACD indicator (8, 21, 8,)

 RSI indicator ( 21 period).

 

Enter LONG when:

o A new candle opens ABOVE all three MAs AND

o MACD make second bar ABOVE the zero line AND

o The value line of RSI moves ABOVE the RSI Trend Line. (most reliable when the RSI value is above 50. However, it’s not necessary to be above 50)

 

- Enter SHORT when:

o A new candle opens BELOW all three MAs AND

o MACD make second bar BELOW the zero line AND

 

The value line of RSI moves BELOW the RSI Trend Line. (most reliable when the RSI value is below 50. However, it’s not necessary to be above 50)

 

How to Draw the RSI trend line?

Three exponential moving averages with M
compressed file archive 742 Bytes

 

To draw a trend line, just simply connect at least two turn points of RSI value line by a straight line which connects the last two value line tops. The last value line top is the one that is formed closest to your current signal than the others and match closest to correction on the price chart (point 2 in the above screenshots). The next line top (point 1 in the above screenshots) is normally lower than the first top in a Short trade and higher than the first top in a Long trade.

 

Exit position

 

You can use a fixed target profit set to be the same as your stop loss (100 pips) or use this exact exit rules: For Long Trade: EXIT when the value line of RSI crosses the trend line (which is determined at the entry setup) downward. For Short Trade: EXIT when the value line of RSI crosses the trend line (which is determined at the entry setup) upward.

 

Profit Targe Predetermined or Profit Target ratio 1.5 Stop Loss.

 

In the chart above, at point 1 you can see the new candle opens below 3 EMAs lines. At point 2, you can see MACD make second bar BELOW the zero line. And at point 3, you can see the value line of RSI (blue) moves BELOW the RSI Trend Line. This is perfect signal for a short trade. I entered a trade here at 1.4750 and exit at 1.4550 when the RSI trend line crossed the value line upward. Made 200 pips easily.

 

 

In the chart above, at point 1 you can see the new candle opens ABOVE 3 EMAs lines. At point 2, you can see MACD make second bar ABOVE the zero line. And at point 3, you can see the value line of RSI (blue) moves ABOVE the RSI Trend Line. This is perfect signal for a long trade. I entered a trade here at 1.5275 and exit at 1.5475 when the RSI trend line crossed the value line downward. 200 pips easily.

 

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three exponential moving averages with MACD

three exponential moving averages with RSI and MACD