In order to get a signal for buy position in this system we need that all conditions will come at the same time. First we should see the short EMA crossing the 10 EMA. If the short EMA crosses the 10 EMA from below to above, that’s our signal to buy, but we also need to check that the RSI is above 50, which means the price is in positive momentum and we would like to see the stochastic move upwards.but not over the 80 value.
This kind of setup is a good signal for buying positions.
there are two possibilities for this position to get a signal to exit from this position.
- If the moving average will cross back from up to down.
- If the RSI gets back below the 50 value.
I would advise you to always combine this system with another price action pattern and any indicators you have.
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