Trading Pullbacks
20-50 EMA & RSI 📊
RSI (Relative Strength Index)
Type: Momentum indicator
Purpose: Shows if an asset is overbought or oversold
Range: 0 to 100
Above 70 = Overbought (possible sell signal)
Below 30 = Oversold (possible buy signal)
Use: Helps find reversal points or confirm trend strength.
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EMA (Exponential Moving Average)
Type: Trend-following indicator
Purpose: Smooths price data, gives more weight to recent prices
Popular settings: EMA 9, EMA 20, EMA 50, EMA 200
Short-term: EMA 9 or 20 (fast reaction)
Long-term: EMA 50 or 200 (slow reaction)
Use:
Price above EMA = uptrend
Price below EMA = downtrend
EMA crossovers can give buy/sell signals
