Trading Strategy with 4 Indicators RSI, CCI, and EMA

Trading Strategies Using RSI, CCI, and Exponential Moving Averages

In this article, we will discuss a trading strategy using the Relative Strength Index (RSI), Commodity Channel Index (CCI), and two exponential moving averages. These 4 indicators will help you in detecting trend strength and identifying potential trend reversals.

Trend Strength Detection and Trend Reversals

When trading on Pocket Option, it is crucial to pay attention to the RSI and CCI indicators. If the CCI is at the highest resistance level and the RSI is at its highest, there is a high potential for trend reversals. This can serve as a useful filtering method. When the two exponential moving averages cross with each other, there is a high probability of the trend going down in the next few seconds.

Trading Strategy

• Downward Trend: If the CCI and RSI touch the support line of their bands while the two exponential moving averages cross each other, it may be an opportunity to trade for a downward trend.
• Upward Trend: When all trading requirements are met, such as the RSI at the bottom and the CCI indicator showing best market conditions, there is a high possibility of a winning trade in an upward trend.

Trading Parameters

• RSI Period: 14
• CCI Period: 20
• Exponential Moving Average: 12 and 23