Combining SMA Crossovers and Smoothed RSI for Delphic Trade Signals
Summary
This indicator system combines a Delphic-style moving-average setup with a smoothed RSI filter to mark potential long and short phases. For a long signal, the fast simple moving average crosses above the slow average, price remains above the fast average, then pulls back below it and closes back above it while the averages retain their bullish ordering. The short setup mirrors those steps. A smoothed RSI centered around zero confirms direction before the system emits a signal.
A companion chart indicator draws arrows when signals appear; the primary indicator returns directional signals for use in a separate panel or by a trading robot. The author says the standard parameters were tested on daily charts for over six months, but provides no quantified results or independent validation. Other timeframes require experimentation, and the method does not specify exits, position sizing, or risk controls, so the entry signals alone do not define a complete trading system.
Key ideas
- The long and short setups begin with a crossover between fast and slow simple moving averages.
- Each setup waits for a pullback to the fast average and a confirming close back across it.
- A smoothed RSI value relative to its midpoint filters the directional signal.
- A companion indicator displays arrows, while the primary indicator supplies signals for automation.
- The stated parameter testing is limited to daily charts and is not accompanied by performance metrics.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.