What are MACD and RSI?

MACD (Moving Average Convergence and Divergence): An oscillator that measures the direction and strength of a trend.

RSI (Relative Strength Index): A momentum indicator that determines overbought or oversold levels.

2. MACD (Moving Average Convergence and Divergence)

Components:

MACD Line: 12 EMA - 26 EMA.

Signal Line: 9 EMA of MACD.

Histogram: The difference between the MACD line and the signal line.

Basic Interpretation:

If the MACD line crosses the signal line upwards: Buy signal.

If the MACD line crosses the signal line downwards: Sell signal.

3. RSI (Relative Strength Index)

Formula:

RSI = 100 - [100 / (1 + RS)], RS = Average gain / Average loss.

Basic Interpretation:

RSI > 70: Overbought (A correction may occur).

RSI <span Oversold (Buying opportunity).

4. Using MACD and RSI Together

Advantages:

Evaluation of trend and momentum at the same time.

Less potential to produce false signals.

Basic Strategies:

Consistent Signals:

If the MACD and RSI point in the same direction, it is a reliable signal.

For example, if the MACD gives a buy signal and the RSI is coming out of oversold, it is a strong buy signal.

Different Signals:

If the MACD and RSI give different signals, there may be uncertainty in the market.

5. Strategy Examples and Practical Application

Strategy 1: Trend Following

The MACD line crosses the signal line upwards (buying).

The RSI rises above the 50 level (increasing momentum).

Strategy 2: Overbought/Selling Opportunities

A buying opportunity can be sought when the RSI falls below 30.

It is confirmed by the MACD's upward reversal signal.

Strategy 3: Price and Indicator Divergences

If the RSI is falling while the price is rising, selling pressure may come.

Confirmation is made with the MACD intersection.

6. Application on the Chart

A sample stock/crypto chart study.

MACD signal line intersection.

RSI's reversals from overbought/oversold levels.

7. Risk Management

Determining stop-loss and take-profit levels.