In this article, we will review a trading strategy based on two Exponential moving averages (EMA) and such indicators as RSI and Parabolic. This strategy helps to find entry points in the direction of the active trend after corrections.
In this review, we will discuss trading overbought and oversold areas. A trader may use special indicators that analyze the dynamics of price changes and show the overbought and oversold areas.
The Relative Strength Index (RSI) is one of the few trader's instruments able to go ahead of the price. Of course, such situations do not happen every day, however, this feature is really interesting and useful for the analysis of the current market situation.