CCI or Momentum Reversal Signals with RSI and EMA Filters

Summary

This reversal approach combines a zero-line cross from either CCI or momentum with a recent RSI extreme. A long signal requires an upward cross and an oversold RSI reading within the current or prior three bars; a short signal uses the corresponding downward cross and overbought reading. Signals are further restricted by price relative to a 100-period EMA: longs at or below it, shorts at or above it. The defaults include a 10-period CCI or momentum length, a 14-period RSI, and RSI thresholds of 35 and 65. A divergence option is enabled by default and requires a local RSI turn. The source code does not implement the described ATR stop or profit target.

The document frames the method for range-bound markets and warns that countertrend entries can incur repeated losses in strong trends. It suggests trend filters, volume confirmation, and parameter tests. Published settings specify BTC/USDT futures, hourly bars, and a short November-to-December 2023 interval, but no performance metrics are supplied, so effectiveness is unverified.

Key ideas

• The strategy uses a CCI or momentum zero-line cross alongside a recent RSI extreme to signal a reversal.
• Long and short signals are filtered by price relative to a 100-period EMA.
• The divergence setting requires a local RSI turn, while optional bands are described as visual guidance rather than entry logic.
• The prose describes ATR-based exits, but the provided source code does not implement those exits.
• Strong trends can produce repeated countertrend losses, and the stated backtest settings include no performance results.

Tags

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