Best Forex Indicator Combination: Moving Averages with RSI

Introduce to you a trend-following system composed of two famous indicators Moving Averages and Relative Strength Index, mainly applied to the long-term charts.
Long-term trending strategies are always considered traders’ best weapons to deal with market fluctuations.

When trading it is always a good idea to get the best forex trading indicators that you can and understand and use them for combinations in forex.


Two Exponential Moving Average (EMA) – an extremely popular lagging beacon – is used here to highlight trending conditions and find trading signals. About the leading guide, it’s the Relative Strength Index – a perfect product of legendary technical analyst Welles Wilder. This indicator is also called RSI, having the main function to determine market momentum and overbought/oversold zones.

The setting of this strategy is as follows:

  • Two Exponential Moving Averages. One is set of 5, and the other is set of 10;
  • A 21-period Relative Strength Index.

The win ratio of the RSI with Moving Average Indicator is far confirmed at 85.66% after being tested for 15 months. According to the testing result, this strategy works best on the daily chart. Despite the fact it could be applied to any financial assets, even cryptocurrency pairs, we suggest mainly using it to find signals on the EUR/USD.

How to Forex Indicator Combination?

One of the things makes this strategy appreciated is its simplicity. All the above mentioned indicators are in-built in FinmaxFX MT5 platform, so that you just need to set up following the guidance.

A bullish occasion is confirmed when the following requirements are met:

  • The 5-period EMA turns above the 12-period one;
  • The RSI line crosses above the 50 level.

Best Forex Indicator Combination: Moving Averages with RSI

On the contrary, a bearish signal is identified when the following conditions are satisfied:

  • The 5-period EMA closes below the 12-period one;
  • The RSI line turns below the 50 level.

Best Forex Indicator Combination: Moving Averages with RSI

Of course, there are some terms when trading with this strategy.
They are as follows:

  • The candle of confirmation must be fully close before any trading decisions are made;
  • Only one position should be entered at a time;
  • You should place the stop loss 50 pips away from the entry point.

The take profit point will depend on the risk/reward ratio you target (it has to be at least 1:1). When prices move towards the expected direction about 30 pips, the stop loss should be transfered to the breakeven point.

If you like this strategy, you might also be interested in this Triangle Trading System

Pros and cons of the Combination Strategy

  • Simple, flexible and effective;
  • Deliveries reliable signals by strict entering rules;
  • Allow traders to capture long trends and gain huge profits ;
  • Doesn’t requires a constant observation.

  • Requires a high level of patience.


Long-term strategies are always our top priority when recommending to traders. With a high accuracy in addition to a variety of advantages mentioned above, we consider the One Look one of the best in our long-term strategies collection, and the best strategy for newcomers to start with. However, we would like to reiterate that there are no 100% winning systems, and this One Look is not an exception. Please don’t forget to use risk controlling and psychology managing methods when trading with it.
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