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The basic idea behind combining these two tools is to match crossovers. In other words, if one of the indicators has a cross, we wait for a cross in the same direction by the other indicator. When this happens, we buy or sell the equity.
LONG TRADE SETUP:
1. MACD crosses above its Signal Line
2. RVI crosses above its Signal Line
EXIT Rules:
We hold until the MACD line crosses below its Signal Line
SHORT TRADE SETUP:
1st. The MACD line crosses below its Signal Line
2nd . The RVI line crosses below its Signal Line
EXIT Rules:
To manage the position, we hold until the MACD line crosses above its Signal Line
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