Axis Reversal Signals with ATR Trend Filters and RSI

Summary

The script builds rolling high and low levels using a sensitivity input, then marks those levels active after price breaches prior extrema. An ATR-based trailing trend calculation supplies a directional state, while RSI checks whether an overbought or oversold reading occurred within the preceding ten bars. Long and short signals occur when the corresponding active-level state resets alongside the matching recent RSI condition. Entries use fixed percentage stop-loss and take-profit orders based on average position price.

The script specifies an ATR period of 10, an ATR multiplier of 2, a 1.0% stop, a 1.5% target, and a 50-bar sensitivity by default. It also sets cash sizing, commission, margin, and pyramiding parameters. The accompanying prose is truncated and claims precision without presenting supporting results; no usable backtest period or performance evidence is supplied. The code’s actual signal conditions should be assessed directly, with particular care around rolling-level behavior, costs, and whether the fixed exits suit the traded market.

Key ideas

• Rolling highs and lows become active reference levels when price breaches prior extrema.
• An ATR-based directional state and recent RSI extremes combine to trigger reversal entries.
• The script uses fixed percentage stop and target distances from average entry price.
• Default settings include 50-bar sensitivity, a 10-period ATR, a 1.0% stop, and a 1.5% target.
• The accompanying claims are unsupported by reported backtest results, so the script requires independent evaluation.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.