EMA Cross RSI with Digital MACD

The EMA Cross RSI with Digital MACD delivers precise momentum signals that help you determine current trend conditions and upcoming trend-reversals.

Technically, it is a trend-following system that comprises EMA-Cross RSI and Digital MACD for examining the price momentums.

The EMA-Cross RSI plots crossovers between a 5 and 12-period EMA. Next, it applies a 21-period RSI to examine the validity of the crossover by using the momentum signal. The arrows above and below the price bars show the possible direction of upcoming trend reversals.

EMA Cross RSI with Digital MACD explanation

Moreover, it adds Digital MACD as the trend filter of the system. It applies a 5-period signal MA that appends better stability of its trend signals.

Buy Signal Generation with EMA Cross RSI with Digital MACD

The EMA Cross RSI with Digital MACD works best in 5-minute charts. Its signals look pretty steady in this particular timeframe. A green arrow below the price bar suggests a bullish trend confirmation from EMA and RSI.

EMA Cross RSI with Digital MACD buy signal

Next, the Digital MACD bar needs to be above the zero line, with the Signal MA showing a positive value to confirm a buy order. Exit long when the Digital MACD turns negative.

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Sell Signal Generation with EMA Cross RSI with Digital MACD

In the above example, the EMA-Cross RSI plot a red arrow above the high price bar, confirming a bearish trend reversal. The price also plots a bearish inside bar breakout at the top of the chart at the exact moment.

EMA Cross RSI with Digital MACD sell signal

Finally, confirm the sell order when the Digital MACD bars drop below the zero line, and the signal MA value turns negative.

Conclusion

The EMA Cross RSI with Digital MACD is a basic trend-following trading strategy suitable for beginners. The idea of combining EMA with RSI produces consistent trend reversal signals. Besides, the Digital MACD appends extra confirmations of the trade signals. According to our review, this MT4 trading system is a good match for forex and stocks day traders.

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