Breakout Signals with Candle, Momentum, Trend, and RSI Filters
Summary
This indicator seeks breakout entries by requiring several conditions to align. A long signal uses a bullish candle whose body exceeds half its range, a close above the prior two highs, a 20-period average above a 50-period average, and RSI below 70. The short rules reverse candle direction and price breakout, require the shorter average below the longer one, and use RSI above 30. A cooldown rule is intended to reduce clustered signals, while arrows are plotted at an ATR-based distance from the bar.
The description recommends use in trending markets and mentions volume bars or time bars starting at an hourly interval. It supplies indicator logic but no historical test, execution rules, stop placement, position sizing, or performance evidence. The ATR multiplier is defined in the example but does not appear in its signal logic; ATR is used to position plotted arrows. Thus the signals are chart annotations, not a complete trading system, and their usefulness across instruments and bar types remains unestablished.
Key ideas
- Long entries require a strong bullish candle, a close above two previous highs, an uptrend by moving averages, and RSI below 70.
- Short entries apply corresponding bearish conditions and require RSI above 30.
- A cooldown rule seeks to limit signal clustering after a signal.
- ATR offsets the plotted arrows from bar highs or lows, but the example does not use that multiplier to define risk.
- The document provides no backtest or complete execution and position-sizing rules.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.