𝐅𝐗 𝐖𝐈𝐙𝐘
A YouTuber drops a successful strategy in Forex trading that he’s excited to teach. He guides viewers on setting up RSI and EMA indicators on a chart, changing levels and colors, and adding multiple moving averages.
How to Use RSI and EMA Strategies in Forex Trading
Introduction
As a professional Forex trader, it’s important to have strategies that will help you make successful trades. In this video, we’ll be discussing a strategy that incorporates Relative Strength Index (RSI) and Exponential Moving Averages (EMA).
Setting Up Your Chart
The first step in using this strategy is setting up your chart. Remove any indicators that you may have on your screen by pressing the F plus button and then pressing delete. Once you have a clear chart, begin by adding RSI. Set the period to one, apply it to the closed signal, and add levels. These levels should be set to 8, 20, 40, 50, 80, and 90.
Adding Moving Averages
After setting up RSI, add EMA. EMA 21 should be in red while EMA 5 should be in green. Add EMA 3 in blue, followed by EMA 8 in pink, EMA 13 in yellow, and finally EMA 31 in purple.
Buying and Selling Signals
Now that you have RSI and EMA added to your chart, you can begin to use them to make buying and selling decisions.
When the RSI is above 50, it indicates that the trend is up. This means that you should look for buy opportunities. If the price is above EMA 21, then you should buy. Place your stop loss at the most recent swing low. As the trend continues, look for exit opportunities using the levels set in the RSI.
Conversely, when the RSI is below 50, it indicates that the trend is down. This means that you should look for sell opportunities. If the price is below EMA 21, then you should sell. Place your stop loss at the most recent swing high. Again, use the levels set in the RSI to find exit opportunities.
Conclusion
This RSI and EMA strategy is a simple yet powerful one. By using it, you can make successful trades in the Forex market. Remember to always set stop loss orders to minimize your losses and use the levels in the RSI to find exit opportunities. With this strategy, success is just a few clicks away.
