The Blessed Trader Ph. | Double EMA + RSI (20) Strategy v1.0📊 The Blessed Trader Ph.
Double EMA + RSI (20) Strategy — v1.0
1️⃣ Strategy Overview
This is a trend-following breakout strategy designed to:
Catch strong directional moves
Filter out weak trades using momentum confirmation
Control risk with ATR-based stop-loss and take-profit
It works best in trending markets such as:
Crypto (BTC, ETH, altcoins)
Forex (major & minor pairs)
Indices (NAS100, US30, SPX)
2️⃣ Indicators Used
🔹 Double EMA Channel
EMA 20 High → Dynamic resistance
EMA 20 Low → Dynamic support
These two EMAs create a price channel:
Break above → bullish strength
Break below → bearish weakness
Unlike a single EMA on close, using High & Low EMAs helps:
Reduce fake breakouts
Confirm real price expansion
🔹 RSI (20)
Measures momentum strength
RSI > 50 → bullish momentum
RSI < 50 → bearish momentum
RSI is used only as a filter, not as an overbought/oversold signal.
🔹 ATR (14)
Measures market volatility
Used to calculate:
Stop Loss (1.5 × ATR)
Take Profit (3.0 × ATR)
This makes the strategy:
Adaptive to any market
Effective across timeframes
3️⃣ Trade Rules (Very Important)
✅ BUY (LONG) Conditions
A buy trade is opened only when all conditions are met:
Price closes above EMA 20 High
RSI (20) is above 50
Candle is confirmed (bar close)
➡️ This means:
“Price has broken resistance with strong momentum.”
❌ SELL / EXIT Conditions
The long trade is closed when:
Price closes below EMA 20 Low
RSI (20) is below 50
➡️ This signals:
“Trend strength is weakening or reversing.”
🛑 Stop Loss & 🎯 Take Profit
Stop Loss = Entry − (ATR × 1.5)
Take Profit = Entry + (ATR × 3.0)
Risk–Reward ≈ 1 : 2
This protects capital and lets winners run.
4️⃣ Why This Strategy Works
✔ Trades with the trend
✔ Avoids ranging markets
✔ Uses confirmation, not prediction
✔ Non-repainting (bar close only)
✔ Works on any timeframe
5️⃣ 🔥 Why Heikin Ashi Candles Improve Results
What are Heikin Ashi candles?
Heikin Ashi candles smooth price action by averaging price data instead of using raw OHLC values.
Benefits for THIS strategy:
✅ 1. Cleaner Trend Detection
Fewer false EMA breakouts
Smoother closes above EMA High
Stronger continuation signals
✅ 2. Reduced Whipsaws
RSI stays more stable
Fewer fake buy signals during consolidation
✅ 3. Better Trade Holding
Keeps you in trends longer
Avoids early exits caused by noise
6️⃣ How to Use Heikin Ashi with This Strategy
On TradingView:
Open your chart
Click Candles
Select Heikin Ashi
Apply the strategy
📌 Important Tip
EMAs & RSI will now be calculated using Heikin Ashi data
This is ideal for trend-following, not scalping ranges
7️⃣ Best Settings & Recommendations
⏱ Timeframes
5m / 15m → Crypto & Forex intraday
1H / 4H → Swing trading
Daily → Position trading
📈 Market Conditions
Best in strong trends
Avoid low-volatility ranges
🎯 Pro Tip
Combine with:
Higher-timeframe trend bias
Session filter (London / New York)
Volume confirmation
8️⃣ Final Advice from
🙏 The Blessed Trader Ph.
“This strategy doesn’t predict — it confirms.
Be patient. Wait for clean Heikin Ashi closes.
Trade less, but trade better.”
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