SETUP Conditions.
Indicator:
EMA 13
EMA 21
EMA 55
MACD (5,200,1)
RSI (21)
TIME FRAME: 4H
BUY CONDITION
1. When the three EMAs 13, 21, 55 cross as shown on the picture below.
2. When the Green 3 Moving Average and Red MACD signal line cross and are above or have crossed the middle bollinger band.
3. When RSI(21) has crossed above the 50 level.
4. A complete candle must be formed above the 3 EMAs. If there is a major move then enter at the retracement level of the 13 EMA - This requires patience.
STOP LOSS
Here is where it becomes interesting and this shows you whether you an aggressive trader or not. You need proper money management.
1. I usually place my stop just below the cross of the three EMAs or
2. Where the initial Parabolic SARS forms.
TAKE PROFIT
1. When RSI (21) is above 65% I take half of my position and let the profit run or
2. When Parabolic SARS forms on top of my buy position then I take half of my profit and let the rest run.
COMPLETE BUY EXIT
1. When RSI (21) has crossed below the 50 level and the Green 3 Moving Average and Red MACD signal line have crossed in the downward direction.
Refer to the charts for illustration.
FOR SELL CONDITIONS: Just reverse the buy conditions.
Indicator:
EMA 13
EMA 21
EMA 55
MACD (5,200,1)
RSI (21)
TIME FRAME: 4H
BUY CONDITION
1. When the three EMAs 13, 21, 55 cross as shown on the picture below.
2. When the Green 3 Moving Average and Red MACD signal line cross and are above or have crossed the middle bollinger band.
3. When RSI(21) has crossed above the 50 level.
4. A complete candle must be formed above the 3 EMAs. If there is a major move then enter at the retracement level of the 13 EMA - This requires patience.
STOP LOSS
Here is where it becomes interesting and this shows you whether you an aggressive trader or not. You need proper money management.
1. I usually place my stop just below the cross of the three EMAs or
2. Where the initial Parabolic SARS forms.
TAKE PROFIT
1. When RSI (21) is above 65% I take half of my position and let the profit run or
2. When Parabolic SARS forms on top of my buy position then I take half of my profit and let the rest run.
COMPLETE BUY EXIT
1. When RSI (21) has crossed below the 50 level and the Green 3 Moving Average and Red MACD signal line have crossed in the downward direction.
Refer to the charts for illustration.
FOR SELL CONDITIONS: Just reverse the buy conditions.
