#MarketPullback
Great! I launched a practical illustrative example of a Bitcoin trading chart that shows the entry and exit signals using VWAP + EMA + RSI as you requested.
Analysis and Comments on the Image
The image highlights the EMA crossover (typically EMA 9 above EMA 21) with VWAP, accompanied by RSI signals for confirmation, forming a clear entry pattern. This method supports momentary speculation decisions based on the asset we explained earlier.
How to Set Up the Chart Yourself Practically
1. Trading Platform
Choose a platform like TradingView or Binance Advanced Charting that supports these indicators (Investing.com, Coinbase).
2. Indicators to Add:
EMA 9 and EMA 21: To determine the momentary trend
VWAP: To determine the "fair price" based on volume (HyroTrader, Bitfinex blog)
RSI (14): To assess overbought/oversold conditions and control signals (Kraken, Bitfinex blog)
3. Interpretation:
ConditionSignalActionEMA 9 crosses above EMA 21 and price above VWAP and RSI between 50 and 70Possible Buy SignalEnter immediately at EMA crossover or bounce from VWAPEma 9 crosses below EMA 21 and price below VWAP and RSI between 30 and 50Possible Sell SignalEnter after confirming the downtrendRSI > 70 when price is above VWAPOverboughtAvoid buying or exit the tradeRSI < 30 when price is below VWAPOversoldPotential calculated bounce buying
