RSI, Bollinger and EMA
Pair = Any Major pair.
Indicators = 75ema, RSI 14, Bolinger Band 20
Buy rules:- If price closes above Bolinger middle line and 75ema then check if RSI is crossing above 50.
Sell rules:- If price closes below Bolinger middle line and 75ema then check if RSI is crossing below 50.
Very simple system and it will provide good start to newbies. Later they can refine this system to get better results.
The good or ill of a man lies within his own will. – Epictetus
RSI, Bollinger and MACD can provide good start to novice traders. Nice sharing.
I think SMAs usage to find trend direction is better than using EMAs. But it also depends on trading style.
Originally posted by SashaI think SMAs usage to find trend direction is better than using EMAs. But it also depends on trading style.
Both r moving averages with SMA being more laggy as compared to EMA. Usage of either of them depends on trading style and strategy. Maybe this strategy works better with EMA or maybe writer of this strategy has better knowledge of EMAs as compared to SMAs.
Technical analysis simply do maths. We have to interpret the result according to our style and based on our knowledge. If I have better knowledge of EMAs, I would never go for an SMA.
Originally posted by Champ
Originally posted by Sasha
I think SMAs usage to find trend direction is better than using EMAs. But it also depends on trading style.
Both r moving averages with SMA being more laggy as compared to EMA. Usage of either of them depends on trading style and strategy. Maybe this strategy works better with EMA or maybe writer of this strategy has better knowledge of EMAs as compared to SMAs.
Technical analysis simply do maths. We have to interpret the result according to our style and based on our knowledge. If I have better knowledge of EMAs, I would never go for an SMA.
Yes that is correct. It needs a lot of time to get used to a specific group of technical indicators. It is not like u take any technical indicator and start trading based on that. You need a lot of practice to understand where a specific indicator fails or where it gives successfull indicator of markets. Each indicator has its Pros and Cons based on market conditions. These Pros and Cons can only be understood once u practice that indicator for long term.
Stick to your rules
Thx for sharing system.
I have used RSI a lot in my initial days of trading. I have also used bollinger band but not much and rarely EMA.
Originally posted by illiterate
Thx for sharing system.
I have used RSI a lot in my initial days of trading. I have also used bollinger band but not much and rarely EMA.
I am also of the view that SMAs are more widely used than EMAs. I also prefer to use SMA for trend confirmation but at the same time I am thinking to apply EMAs as I have seen that in some systems it performs much better than SMAs.
Stick to your rules