Simple Moving Average, RSI Strategy

M5 GBP/JPY rules: buy when price is above the 500-period SMA of highs and RSI 14 drops below 30; exit when RSI crosses 70. Reverse logic for shorts.

Published · Updated · Methodology: Technical Indicators

Part of: Moving Average Strategies

  • Methodology: Technical Indicators
  • Content type: strategy
  • Timeframes: M5
  • Markets: Forex, GBP/JPY

Indicators used

  • SMA
  • RSI

Source video

Decoded from: La Estrategia M5 Más Fácil para Principiantes! by Estrategias Ganadoras de Trading — watch the original

Key timestamps:

  • 0:40 - Strategy overview: M5, GBP/JPY, SMA 500 (High), RSI 14
  • 1:30 - RSI settings: standard, 14 periods
  • 1:50 - Short entry conditions explained
  • 2:50 - Long entry conditions explained
  • 3:50 - Long exit conditions explained
  • 4:30 - Short exit conditions explained
  • 5:00 - Risk management (no stop loss mentioned, but risk control implied)
  • 5:30 - Backtest results (StrategyQuant)

Strategy overview

Pairing a moving average with RSI is the standard way of splitting a decision in two: the average indicates which direction the market is leaning, the oscillator indicates when momentum has stretched far enough to act on it. This entry decodes a Spanish-language tutorial — "La Estrategia M5 Más Fácil para Principiantes!" from the channel Estrategias Ganadoras de Trading — which pins that pairing to one chart and one instrument from the very first chapter: the 5-minute timeframe on GBP/JPY, named at 0:40 together with both indicator settings rather than left open for the viewer to choose.

What stands out is how little of the "easiest" framing shows up in the parameters themselves. The average is a 500-period SMA, an unusually long lookback for a 5-minute chart — close to two days of continuous bars on a 24-hour forex market — which makes it a slow regime reference rather than a line price crosses often. It is also applied to each candle's High rather than its close, so it sits above where a close-based average of the same length would sit. The RSI, by contrast, is left explicitly standard at 14 and given its own chapter at 1:30 to say so: all of the source's tuning attention goes to the average, none to the oscillator.

The published chapter map is also more symmetric than most beginner tutorials manage. Short entries come first at 1:50, long entries at 2:50, then long exits at 3:50 and short exits at 4:30 — both sides of the trade and both ends of it, each with its own marker, with the short side taught before the long one. No extracted rule set is on file for this entry, so what this page offers is the concept and the shape of the source's own walkthrough; the video remains the reference for how those four blocks are defined.

Topics

simple moving average strategy · rsi strategy · forex strategy · m5 strategy · gbp/jpy strategy · pine script · tradingview strategy · scalping strategy · technical indicators · trading strategy · 5 minute strategy · forex scalping strategy

Frequently asked questions

What is a moving average and RSI strategy?

It is a two-part approach in which a moving average provides the directional or regime context and the RSI, a momentum oscillator, provides the timing within that context. The moving average filters, the oscillator triggers — which is why the two are so often combined.

Why would a strategy use a 500-period SMA on a 5-minute chart?

A 500-period average on M5 covers close to two days of continuous bars, so it behaves as a slow regime reference rather than a fast signal line — price stays on one side of it for long stretches. This version also applies it to each candle's High instead of the close, which places the line slightly higher than a conventional close-based average of the same length.

What market and timeframe does this version use, and what language is the source in?

The source fixes the setup to GBP/JPY on the 5-minute chart, stated at 0:40. The video is in Spanish, from the channel Estrategias Ganadoras de Trading, and is framed as a beginner-level walkthrough; this page summarizes it in English.

How should I evaluate a beginner strategy like this one?

Treat the "easiest" framing as a teaching claim, not a performance claim, and test the logic on historical data for the instrument and timeframe it was designed for before risking capital. Strategy Decoder catalogs strategies presented in video sources so you can find, compare and evaluate them.

About this strategy page

This trading strategy was decoded by Strategy Decoder's AI from a public YouTube trading video and turned into a structured, reviewable specification. In the interactive app this page shows the full entry and exit logic, risk management settings, the indicators involved with their parameters, AlgoWizard-compatible logic and a Pine Script export ready for TradingView backtesting — plus an automated backtest verdict when one has been computed for this strategy.

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