The strategy is based on a combination of the MACD oscillator, the exponential moving average (EMA), and the Parabolic SAR.
Together, the signals that they generate help you efficiently analyze the current trend and see its reversal just in time.
Trading using RSI on the reversal of a trend
This is a counter trend strategy. It’s main principle, therefore, involves trading on a trend reversal.
As its name implies, the strategy is based on the RSI oscillator.
It generates 3 key signals – overbought, oversold, and divergence.
These are the ones that help find trend reversal points.