ilmscore | Prediction Details
"So, you could take our RSI down here in combination with our 100 EMA. We already know from the previous pair we were looking at that the 100 EMA is sometimes respected as support or resistance in trend. So, as you can see, the market is trading above the 100 EMA. we pull back down to the 100 EMA. And when do we want to buy off of the RSI? Well, based on the relative strength index, we would like to buy when the market is oversold. So, let's combine the two as a rule for a strategy and see how it would have performed. As you can see here, market in an uptrend, pulls back to the 100, which we know sometimes acts as support. We look down on the RSI. Here we are as we pull back. And if we go straight down, you can see on the RSI here, we are oversold on the RSI when we pull back into the 100 EMA. There are two really good conditions that you could use in order to create a strategy. Now, remember what we said before, conditions are not all you need to create a strategy. Now, we have conditions. What do we need next? rules for entry. So, a non-subjective rule for entry for this specific strategy could be when the market breaks back above the 25 line on your oversold. So, when the market goes from oversold and comes back out of oversold on the close of the candle that's out of oversold, you could enter the market. There's your reason for entry."
By The Trading Channel (The Trading Channel) | August 22, 2016 | Pending
From video
How to use moving averages ( creating a trading strategy ) 00:18:02 - 00:19:39
Interpreted Prediction
A strategy combining the 100 EMA with a 7-period RSI (25 oversold, 75 overbought) is proposed. The conditions are: market in an uptrend, pullback to the 100 EMA, and RSI is oversold. The entry rule is to buy when the candle closes back above the 25 RSI line after being oversold.

Prediction Details

Topic
Moving Average and RSI Strategy

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