How to open successful LONG positions using the confluence of RSI + EMAs?
One of the most effective techniques for opening longs with a higher probability of success is to combine the strength of the RSI with the crossover of exponential moving averages (EMAs). Here’s how:
Indicators:
RSI (14)
EMA 50 and EMA 200
Setup:
1. Identify the trend: Make sure the EMA 50 is above the EMA 200 → confirmation of an uptrend.
2. Wait for the retracement: When the price returns near the EMA 50, we look for an opportunity.
3. Check the RSI: If the RSI is between 40 and 50 and starts to rise, it indicates that the retracement is losing bearish strength.
4. Entry in LONG: Enter when the price clearly bounces from the EMA 50 and the RSI breaks upward.
5. Stop Loss: Just below the EMA 50 or the last swing low.
6. Take Profit: You can use R:R of 2:1 or exit upon touching a previous resistance zone.
Extra Tip: If volume also starts to increase on the entry candle, it is a strong confirmation.
This strategy is ideal on 1H or 4H timeframes but can also be adapted to swing trading. As always, be cautious with leverage and always conduct your own analysis.
