There are many ways to use technical indicators. Some traders combine different technical indicators to build trading systems. A simple example with moving average, MACD and RSI will be illustrated below.

In this MT4 chart setting, the blue line is the 10-days Exponential Moving Average while the magenta line is the 20-days Exponential Moving Average. Underneath the price chart we also have a MACD and an RSI.

The rules of the system:

  1. Blue line rises above magenta line
  2. MACD crosses zero from below to above
  3. RSI crosses 50 from below to above

When all three criteria are met, enter long (buy). When the reverse of all three criteria are met, enter short (sell).