In this idea I'm providing to you the use of a 10/28 Moving average that you can find in my profile. This particular indicator is specifically designed to use for this type of strategy. keep in mind that also any previous video I made sure to note with all of you guys if you are using a pair of indicators on your chart then the settings for both of these indicators should match each other. That being said since I'm using a 10 and 28. Look back on my price chart then on the lower part of the chart I'm using an RSI where the RSI is 810. And the RSI moving average is 28 periods.
There's a specific reason for this and if you watch the video you'll get a full understanding of it.
In this particular indicator there is not only a fast trend and slow trend line there is also a midline which is not specifically the middle but it is also looking for and showing you good price on the different time frames that you would ever set this indicator to. You can set this indicator to current start time frame a time frame lower or any time frame higher. Accordingly that liquidity trend line which is the golden line in the middle is going to adjust itself as you change your chart time frame.
So now let's get into it
How to Take Long Trades Now that you have your indicator set up and they are matching each other you want to make sure that you have the following for long trades. you should have a candle that breaks above the fast moving average (or the white one) at the same time your RSI is breaking both above the midline and above its own moving average.
This would be the indication for a long trend or an uptrend beginning. If your RSI breaks above its moving average and it's already been above the midline this would be a re entry of a long trade or in other words a continuation trade.
Short Trades are taken by doing the opposite.
Bear in mind that it does not matter if you're moving averages are right side up or upside down while you are taking longer shorts against them. Because the way price action works is that you simply need to be closing against them or faster than your fast period moving average.
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