OPEN-SOURCE SCRIPT

EMA and RSI Strategy

7 hours ago

7 hours ago

This trading strategy, developed using Pine Script, combines the Exponential Moving Average (EMA) and the Relative Strength Index (RSI) to identify entry and exit points for trades. The strategy is centered around a 21-period EMA, a commonly used trend-following indicator, and a 14-period RSI, which gauges the strength of price momentum. A buy signal is generated when the closing price is above the 21-period EMA and the RSI exceeds 60, indicating strong upward momentum in an uptrend. Conversely, a sell signal is triggered when the price drops below the 21-period EMA, signaling potential weakening of the trend. The strategy aims to capture price movements in line with the prevailing trend while ensuring that trades are entered only when sufficient momentum is present. Visual buy and sell signals are plotted on the chart to assist with trade execution, making it easier to spot optimal entry and exit points. This approach is designed for traders looking to capitalize on momentum while staying aligned with the broader trend direction.

Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.

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