How I use the 50 EMA + RSI combo for entries
877 views
6 replies
0 likes
3 days ago
Sharing a simple strategy that has worked well for me over the past year. I use the 50 EMA as a trend filter — only go long when price is above the 50 EMA, only go short when it's below.
For entries, I wait for RSI(14) to pull back to 40-50 in an uptrend (or 50-60 in a downtrend) and look for a bullish/bearish candle pattern. Stop-loss goes below the most recent swing low. Target is 2R.
Backtested on EUR/USD, GBP/JPY, and USD/CAD over 2 years with decent results. Anyone else using a similar approach?
4 Replies
Thanks for sharing this. I've been struggling with timing my entries and this gives me a clearer framework to work with.
The risk management aspect is often overlooked by beginners. Most traders focus too much on entries and not enough on protecting capital.
That's a solid strategy. Have you considered adding volume as a confirmation? It can help filter out false breakouts on lower timeframes.
I've seen this pattern play out many times. The key is patience — waiting for the confirmation candle rather than jumping in early.
Topic Author