The RSI Based Moving Average (MA(RSI)) is a technical indicator that combines two popular technical analysis tools - the Relative Strength Index (RSI) and Moving Average (MA).
The RSI is a momentum oscillator that measures the strength of price movements in a cryptocurrency, while the MA(RSI) indicator provides the simple moving average of the RSI values. For instance, a 7-bar MA(RSI) will give the average of the last 7 RSI readings.
How to use the RSI Based Moving Average MA(RSI)?
The main goal of using the RSI Based Moving Average is to eliminate the effects of sudden and rapid changes in the RSI data. By using this indicator, traders can smooth out the RSI data and make more informed trading decisions.
When using the RSI Based Moving Average, traders commonly look for intersections between the 7-bar MA(RSI) and the 14-bar MA(RSI). The parameters for these moving averages can be adjusted according to the specific trading strategy being employed.
However, it is important to note that the RSI Based Moving Average should not be relied on solely for making trading decisions. It is recommended to use it in conjunction with other indicators for a more comprehensive analysis.
MA(RSI) Indicator at Traderlands Strategy Creator Tool
You can start creating a strategy by selecting the "RSI Based Moving Average MA(RSI)" indicator from the list. An example strategy is shown in the image below. You can use the RSI Based Moving Average MA(RSI) indicator to create a strategy after doing your own research.
Enter Algorithm Rules You Can Add To Strategy Creator
Exit Algorithm Rules You Can Add To Strategy Creator
What is the EMA(RSI)?
The EMA(RSI) indicator is an effective tool for identifying trends and smoothing the data of the RSI indicator. This technical indicator can be used to help traders make informed decisions when investing in cryptocurrencies or other financial instruments.
By combining the Relative Strength Index and the Exponential Moving Average, the EMA(RSI) provides a comprehensive view of the strength and direction of a market's price movements. To get the most out of this indicator, it's recommended to use it in conjunction with other indicators and analysis techniques.
Overall, the EMA(RSI) can be a valuable addition to any trader's toolkit, helping to provide a clearer picture of market trends and the potential for profitable trades.
How to Use the EMA(RSI)?
The EMA(RSI) indicator is a technical analysis tool that combines two popular indicators - the Relative Strength Index (RSI) and the Exponential Moving Average (EMA) - to provide a clearer view of the trend and momentum of a cryptocurrency.
By computing the exponential moving average of the RSI values, the EMA(RSI) reduces the impact of sudden and rapid changes that might affect the accuracy of the RSI indicator.
Trading strategies usually use the EMA(RSI) indicator in conjunction with other technical indicators to determine the most profitable entry and exit points. It's important to keep in mind that the EMA(RSI) should not be relied on solely when designing a strategy.
EMA(RSI) Indicator at Traderlands Strategy Creator Tool
After selecting the "RSI Based Moving Average MA(RSI)" indicator in the Strategy Creator, we can choose SMA or EMA under the “MAType” section by clicking on the setting icon.
An example strategy is shown in the image below. You can use the EMA (RSI) indicator by designing it in accordance with your own research.
Enter Algorithm Rules You Can Add To Strategy Creator
Exit Algorithm Rules You Can Add To Strategy Creator
WARNING: The entry and exit strategies in the images are prepared ONLY for educational purposes to explain how indicators work. It does not guarantee any profit.
When creating an algorithmic trading strategy, a rule set is usually created by using more than one indicator.