Combining EMA Trend, Candlestick Patterns, RSI, MACD, and ATR Exits

Summary

This strategy combines a 50-period EMA trend filter with engulfing and pin-bar patterns, RSI limits, and MACD direction. Long setups require price above the EMA, a bullish pattern, RSI below 70, and MACD above its signal line; short setups reverse the trend, pattern, and MACD conditions, with RSI above 30. The pattern rules use candle body and wick proportions to make recognition more systematic.

Exits use a 14-period ATR, setting both the stop and target 1.5 ATR from the entry reference for a nominal 1:1 risk-reward ratio. The document says backtests performed well on 15-minute, 1-hour, and 4-hour charts, but gives no performance statistics; the included backtest metadata specifies a 1-hour period on ETH/USDT futures over part of 2024. Risks include missed entries from strict filtering, parameter sensitivity, lagging trend signals, range-bound conditions, and losses beyond planned stops during gaps or extreme moves. The rules are a starting framework, not evidence of durable performance.

Key ideas

• The strategy requires trend, candlestick, RSI, and MACD conditions to align before entry.
• Engulfing and pin-bar patterns are defined using candle body and wick size rules.
• Stop and target distances are both set to 1.5 times the 14-period ATR.
• The document reports favorable results across several chart intervals but supplies no performance metrics.
• The approach may struggle in sideways markets and can be affected by lag, parameter choices, and gaps.

Tags

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