Simple trading strategy combining RSI indicator and 2 MA in IQ Option

0
Simple trading strategy combining RSI indicator and 2 MA in IQ Option

Indonesia Português Tiếng Việt ไทย العربية हिन्दी 简体中文 Nederlands Français Deutsch हिन्दी Italiano 한국어 Melayu Norsk bokmål Русский Español Svenska Tamil Türkçe Zulu

In previous posts, I showed you how to use the RSI and MA in analyzing market trends to open a HIGHER or LOWER order when trading IQ Option. However, using only one of these indicators will not achieve the best accuracy rate. So today, I will introduce a simple trading strategy that is highly effective when combining the RSI indicator with 2 MA that has been tested by professional traders.

Register IQ Option and Get Free $10,000 Risk warning: Your capital might be at risk.

Simple trading strategy when combining the necessary indicators

This strategy doesn’t have a specific name. Because it is merely a combination of simple technical indicators of trend and momentum to make the most accurate decisions. After understanding the basic knowledge, you can apply it to the market and make profits easily.

Combining indicators together
Combining indicators together

How to set up a trading strategy that combines the RSI indicator with 2 MA

First, we will set up the Relative Strength Index (RSI) indicator. Go to Indicators, then select Momentum and click on Relative Strength Index.

Setting up the RSI in IQ Option
Setting up the RSI in IQ Option

Set the Basic line – Period to 16 (default in IQ Option is 14).

Customize the RSI indicator in IQ Option
Customize the RSI indicator in IQ Option

Now comes the part of adding 2 moving averages to the Japanese candlestick chart. Select Indicator, then click Moving Averages tab and continue to select Moving Average.

Set up 2 MA in IQ Option
Set up 2 MA in IQ Option

In the “Type” section, select the SMA. In the Period, adjust it to 18 as shown below.

Customize the SMA indicator in IQ Option
Customize the SMA indicator in IQ Option

Similarly, in the “Type” section, select the EMA and adjust it to 7.

Customize the EMA indicator in IQ Option
Customize the EMA indicator in IQ Option

How to enter a trade with RSI indicator and 2 MA

To open a highly secure trade with the RSI indicator combining 2 MA, the following two conditions must be met:

Open a HIGHER order when the EMA (purple) cuts the SMA (blue) from below and the RSI crosses the 70 (overbought zone) from below.

How to open a HIGHER order
How to open a HIGHER order

Open a LOWER order when the EMA cuts the SMA from above, and the RSI crosses the 30 (oversold zone) from above.

How to open a LOWER order
How to open a LOWER order

How to manage money effectively

Money management is the art of keeping and investing profitably on your initial funds by applying strict risk management. This is the most important part besides the trading psychology.

Money is the ultimate necessity to survive in the market. If you lose all your money, your journey ends there. But newbies often tend to ignore it and just focus on technical analysis.

So when using the trading strategy with the RSI indicator and 2 MA, to minimize risk as much as possible, you should refer to the Classic balanced capital management. That is, each order will have an equal amount of money.

For example, you have a capital of $100 for 5 trades per day. So you will open an order with an amount of $20.

Classic money management
Classic money management

If the strategy you use has a win rate of more than 60%, then you will get some profits for your pocket.

Conclusion

With this simple strategy plus a good capital management method, I believe you will get an effective trading tool in IQ Option. What you need to do first is to test it on a Demo account. When there are good results from 2 to 3 weeks, you can use it in real trading to seek profits.

Don’t rush into the market after reading this article. Everything needs to be well prepared to create the premise for the correct decisions when trading.

Register IQ Option and Get Free $10,000 Risk warning: Your capital might be at risk.

Indonesia Português Tiếng Việt ไทย العربية हिन्दी 简体中文 Nederlands Français Deutsch हिन्दी Italiano 한국어 Melayu Norsk bokmål Русский Español Svenska Tamil Türkçe Zulu

Simple trading strategy combining RSI indicator and 2 MA in IQ Option
5 (100%) 45 reviews

LEAVE A REPLY

Please enter your comment!
Please enter your name here