Combining EMA, MACD, RSI, and ADX for Trend-Momentum Entries

Summary

This trend-following system requires several indicators to align before entering. Price above or below a 100-period EMA defines direction; a MACD crossover supplies the momentum trigger; RSI above or below 50 checks directional strength; and ADX above a threshold screens for a sufficiently strong trend. The described defaults include a 20 ADX threshold, percentage-based take profit and stop loss, and an optional trailing stop. Position size is set as a proportion of account equity.

The document includes strategy rules and a short published example configuration for DOGE/USDT futures on two-minute bars. It gives no backtest performance figures, so the example cannot demonstrate profitability or robustness. The discussion notes lag around reversals, whipsaws and costs in ranging markets, parameter sensitivity, overfitting risk, and stop slippage in gaps or poor liquidity. Suggested refinements include volume and volatility filters, pullback entries, time filters, dynamic sizing, and fundamental-event exclusions.

Key ideas

• A 100-period EMA sets the directional bias, while MACD crossovers trigger momentum entries.
• RSI must be above 50 for longs or below 50 for shorts, and ADX must exceed its threshold.
• The strategy describes fixed percentage exits, an optional trailing stop, and equity-based position sizing.
• The published example uses DOGE/USDT futures on two-minute bars but gives no performance results.
• Lag, range-bound whipsaws, parameter overfitting, and execution gaps are stated risks.

Tags

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