Catching reversals early can completely change your trading results — and one of the simplest ways I do it is by combining RSI with the EMA. This combo gives clear signals without overthinking.

I start with the RSI (14). When RSI enters overbought or oversold zones, it tells me the market is getting tired. But RSI alone is not enough — so the EMA helps confirm the actual shift in direction.

📌 Here’s My Exact Method:

  • When RSI is oversold, I watch for price to cross above my EMA (usually EMA 20 or 50).

  • When RSI is overbought, I look for price to fall below the EMA.

  • The EMA acts like a trend filter — if price can’t break it, the reversal isn’t strong yet.

📌 Why this works:

RSI shows momentum extremes, and EMA shows trend strength. When both align, reversals become cleaner and more reliable.

This method works best on 5M, 15M, and 1H charts, especially during volatile markets. Remember — wait for confirmation, not just RSI touching a level.