EMA + Stochastic + RSI

EMA + Stochastic + RSI

Recommended timeframes H1

Instruments: the strategy fits all instruments.

Timeframes: H1, H4.

Indicators:

• EMA (5, 10);

• Stochastic (14, 3, 3);

• RSI (14, 70, 30).

Open long positions when the 5EMA crosses the 10EMA from the bottom, Stochastic’ lines are directed up and are not in the overbought zone, i.e. not above the 80 mark, and the RSI is above the 50 mark.

Open short positions when the 5EMA crosses the 10EMA from the top, stochastic is headed down but not in the oversold zone, and the RSI is below the 50 mark. 

Stop loss: is placed at the level of the previous local low.

Take profit:

Close long positions when Stochastic rises above the 70 mark. Close short positions when Stochastic falls below the 30 mark.