The Relative Strength Index (RSI) is a momentum oscillator that measures the speed and change of price movements. It ranges from 0 to 100 and is typically used to identify overbought or oversold conditions in a market. How to Use with Ichimoku:
Long Entry: Look for RSI to be above 30 (indicating it is not oversold) when the price is above the Ichimoku Cloud. Short Entry: Look for RSI to be below 70 (indicating it is not overbought) when the price is below the Ichimoku Cloud. 2. Moving Average Convergence Divergence (MACD) Overview:
The MACD is a trend-following momentum indicator that shows the relationship between two moving averages of a security’s price. It consists of the MACD line, signal line, and histogram. How to Use with Ichimoku:
Long Entry: Enter a long position when the MACD line crosses above the signal line while the price is above the Ichimoku Cloud. Short Entry: Enter a short position when the MACD line crosses below the signal line while the price is below the Ichimoku Cloud. Combined Strategy Example Here’s a brief outline of how to structure a trading strategy using Ichimoku, RSI, and MACD:
Long Entry Conditions: Price is above the Ichimoku Cloud. RSI is above 30. MACD line crosses above the signal line. Short Entry Conditions: Price is below the Ichimoku Cloud. RSI is below 70. MACD line crosses below the signal line. Exit Conditions: Exit long when MACD line crosses below the signal line. Exit short when MACD line crosses above the signal line.