Combining MACD, RSI, and Relative Volume for Trading Signals
Summary
This strategy combines MACD, RSI, and relative volume (RVOL) to generate long and sell signals. Its defaults are MACD 12/26/9, RSI 14 with oversold and overbought thresholds of 30 and 70, and RVOL measured against a 14-period average. The author says it was designed with 15-minute charts in mind, while also describing it as usable across time intervals.
A signal is triggered when any two of three indicator events coincide: RSI crossing its threshold, MACD crossing its signal line, or RVOL crossing a specified level. For longs, those events are an upward RSI cross of 30, an upward MACD cross, and RVOL rising above 2. For sells, they are a downward RSI cross of 70, a downward MACD cross, and RVOL falling below 5. The document provides rules and code but no performance results, transaction-cost analysis, or validation across markets. The reported thresholds and timeframe are therefore design choices, not evidence of profitability.
Key ideas
- Long signals require any two of an RSI cross above 30, a bullish MACD cross, or RVOL crossing above 2.
- Sell signals require any two of an RSI cross below 70, a bearish MACD cross, or RVOL crossing below 5.
- RVOL is calculated as current volume divided by its moving average over the selected period.
- The strategy is described as intended primarily for 15-minute intervals, with no performance evidence provided.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.