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Combining DMI, RSI Thresholds, and Moving Average Crossovers for Signals

Article Strategy library · Author: Zer3192

Summary

This indicator combines a directional movement calculation, a nine-period RSI, and two smoothed price series: the average of a 21-period simple moving average and a 50-period exponential moving average, and a 35-period exponential moving average. Its stated buy and sell conditions require the first smoothed series to cross above the second while RSI meets a respective threshold condition. The indicator displays signal labels and submits long or short entries when those conditions occur.

The published settings identify BTC/USDT futures on Binance, using four-hour bars with a 15-minute base period over about a year. No results or analysis of profitability are supplied. The directional movement calculation is computed but does not appear in the displayed entry conditions, and both signal branches use the same crossover direction. The code also leaves explicit position-closing rules commented out, so it offers an illustrative signal recipe rather than a fully assessed trading system.

Key ideas

  • The buy and sell rules combine an RSI threshold condition with a moving average crossover.
  • The first average blends a simple and an exponential moving average, while the comparison average is exponential.
  • The indicator plots buy and sell labels and submits corresponding directional entries.
  • The directional movement values are calculated but are not used in the visible signal rules.
  • The published backtest settings provide no performance evidence, and explicit closing rules are commented out.

Tags

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