Combining MACD, RSI, and Trend Filtering on the Price Chart
Summary
This indicator overlays MACD and RSI values on a price chart to show price, momentum, and trend together. It includes trader-adjustable RSI overbought and oversold levels, and a trend feature intended to help filter trades in the direction of the broader trend. The document proposes watching crosses between the MACD, RSI, and signal line as possible signs of momentum shifts or reversals; a MACD cross upward through its signal line is presented as potentially bullish, with a downward cross potentially bearish.
The page offers a qualitative description of the display and its suggested use, but no chart examples, precise indicator settings, systematic entry or exit rules, or performance tests. Crosses are described as possible signals, not reliable forecasts. The text also does not explain how trend is measured or how the differently scaled indicators are transformed to appear around price, so independent validation and risk controls would be needed before using the signals in a strategy.
Key ideas
- The overlay places MACD and RSI information directly on the price chart.
- RSI overbought and oversold thresholds can be adjusted by the trader.
- A trend feature is intended to filter signals toward the underlying trend.
- Crosses may suggest momentum changes, but the document provides no test results or complete trading system.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.