In a typical RSI crossover strategy, traders often look for signals when the RSI crosses certain thresholds (e.g., 30 for oversold and 70 for overbought). In your case, with a length of 24, you might consider buying when RSI crosses above 50 and selling when it crosses below 50.
2. **Filtering with 50 EMA:** - Exponential Moving Average (EMA) Length: 50
You are using the 50 EMA as a filter, only taking trades when the candle is above this moving average. This is a common trend-following approach. Buying when the price is above the 50 EMA can be seen as entering trades in the direction of the prevailing trend.
3. **Candlestick Type:** - Heikin Ashi Candles
Heikin Ashi candles are modified Japanese candles that provide a smoother representation of price trends. They are commonly used to reduce noise and identify trends more easily.
Putting it all together, a potential trade setup could be as follows:
- **Buy Signal:** - RSI crosses above 50 - Candle is above the 50 EMA - Heikin Ashi candle confirms the bullish trend
- **Sell Signal:** - RSI crosses below 50 - Candle is below the 50 EMA - Heikin Ashi candle confirms the bearish trend
Remember that no trading strategy is guaranteed, and it's essential to backtest and evaluate its performance on historical data before applying it to live trading. Additionally, consider risk management principles to protect your capital. Adjustments may also be needed based on market conditions and your risk tolerance.