EMA 50 with RSI Level 50 EA

1st Scenario: 4-Candle Setup (Breakout and Retest)

• Step 1: Breakout Candle: The price breaks above the EMA 50.
• Step 2: Retest Candle: After the breakout, look for a bearish (red) candle that touches the EMA.
• Step 3: Entry Candle: Identify a bullish (green) candle that closes above the EMA.
• Step 4: Trade Candle: Enter the trade when the price crosses 2 pips above the high of the bullish entry candle.

RSI Confirmation:

• For Buying: After the 4-candle setup is complete, check the RSI. If RSI is above 50, it's a valid setup. If below 50, it's invalid.

• For Selling: If the RSI is below 50 after the setup, it's valid. If above 50, it's invalid.

• Stop Loss (SL): Place the SL below the low of the bullish entry candle.

• Take Profit (TP): Set the TP based on the SL (e.g., 1x, 2x, or 3x the SL).

• Break Even (BE): Once the trade reaches the desired profit level, move the SL to BE and close half of the trade lot.

2nd Scenario: Breakout with Immediate Follow-Through

• Step 1: Breakout Candle: The price breaks above the EMA 50.
• Step 2: Trade Candle: Look for a candle (could be the 1st, 2nd, or 3rd candle after the breakout) that breaks above the high of the breakout candle.

Entry Point: Enter the trade when the price crosses 2 pips above the high of the breakout candle.

• Stop Loss (SL): Place the SL below the low of the breakout candle.
• Take Profit (TP): Set the TP based on the SL (e.g., 1x, 2x, or 3x the SL).
• Break Even (BE): Move the SL to BE when the desired profit level is reached, and close half of the trade lot.

Scenario Notes:

• Continuation Without Retest: If the breakout occurs and the price doesn’t immediately cross the breakout candle but starts forming doji candles instead, and doesn’t retest, then the trade becomes valid if a 4th or 5th candle crosses the breakout high. This is part of Scenario 2.
• Retest Happens: If the breakout occurs, followed by a doji, and then the price retests the EMA before crossing the breakout candle, it switches to Scenario 1, making Scenario 2 invalid.
• Low Break in Scenario 2: If after the breakout, the second candle breaks the low of the breakout candle and then closes bullish, the trade is already valid under Scenario 2, so Scenario 1 does not apply.