RSI + MACD Strategy
Hello, dear Arya Trader followers and dear investors. We are starting a new series of articles with you! In this series, we will publish articles at the strategic education level for followers who read our basic analysis tutorials.
In this series, we will convey complex uses such as dual and triple use for our audience who learn the history, usage and strategies of indicators. So let’s start with the RSI + MACD Strategy, the first article in our series…
RSI and MACD are the two most common indicators, both historically and in terms of popularity. These two indicators have both similar and divergent features. For example, one has overbought and oversold zones, while the other has signals arising from the intersection.
These differences and similarities are also absolutely necessary for making confirmed transactions. Because reducing the buy-sell decisions you will make in your transactions to a single indicator causes erroneous results.
In order to do this analysis, first of all, we need to know how to get efficiency from which indicator. In other words, it is necessary to evaluate the results provided by both indicators both separately and in an integrated manner.
For example, when buying Trend Confirmation and Buy/Sell Signal with MACD; We also get Trend Confirmation and Momentum Change with RSI. We should analyze these results separately and in combination on the financial asset we will trade.
The MACD strategy with the RSI works best in a 4-hour or 1-day trading range. If you are an investor who makes hourly/daily transactions, this binary use is one of the ideal analysis tools for you.
So let’s see what the MACD and RSI individually tell us.
With the MACD we see a histogram with two lines above and below the zero line. Basically, the lines above zero and the histogram give us positive; the lower one gives the negative region.
The RSI, on the other hand, has a single line that shows the imbalances in the rise and fall of the price and the rate at which these imbalances occur. The most important thing here is that the RSI also shows the overbought and oversold points.
Now let’s take a closer look at what these indicators show us…
Let’s run this on the chart of a financial asset where you observe a decline or rise. The fact that the RSI value is at the oversold point along with the falling price and the MACD value also shows a harmonious coexistence.
Then, the MACD line crossing the Signal line upwards and the RSI value showing an increase beyond the line towards the midline are among the factors that show us that we are getting the right signal.
However, determining the lowest level seen in the price value as Stop Loss and the highest level as Take Profit will give one of the most accurate strategies.
Of course, indicators will not always give such consistent and accurate results. While MACD gives a buy signal, RSI may not act yet or give a vice versa signal. In this case, getting confirmation with a third indicator is one of the alternatives.
In addition to this dual use, the third indicator you can use can be one of the following;
• EMA100
• BB
• OBV
• MFI
• ATR
• SMA
• CCI
• ADX
As you can see, there are many alternatives you can use in addition to RSI and MACD. However, it should be noted that for the confirmation process, more than double, triple or quadruple methods may lead you wrong.
As a result;
In general terms, the use of indicators is the most important tool used when trading in investment markets. However, these tools must be used and interpreted correctly. When using more than one indicator, it is extremely important to determine the most accurate strategy to protect your investments.
It is also possible to approach the most accurate result by scanning these indicators thousands of times per second with artificial intelligence technology, which we hear frequently today. That’s why Arya Forex Robots has been developed for this purpose.
You can easily access how artificial intelligence treats buy-sell signals before market dynamics and contributes to growing your investments. All you have to do is visit the Aryatrader.com website and benefit from the power of artificial intelligence in your transactions…
Visit Arya Trader website for details.
