Combining SMI and RSI Signals with Candle Filters
Summary
This strategy combines the Stochastic Momentum Index (SMI) and the Relative Strength Index (RSI) to generate long and short signals. An oversold SMI or low RSI can support a long entry, while the corresponding overbought conditions support a short. In dual-signal mode, both indicators must agree. Candle direction and a minimum body-size filter add confirmation intended to screen out weak signals.
The document describes configurable indicator lengths, thresholds, trading directions, and date limits. Its Pine source also includes optional martingale sizing and exits tied to a qualifying candle, but the written explanation offers no measured performance results. Published settings show a short BTC-USDT futures backtest window, yet no outcome statistics are supplied. The authors note that indicator signals can be false, strict confirmation can miss opportunities, and thresholds require simulation or backtesting; the strategy should therefore be treated as an unvalidated template.
Key ideas
- SMI and RSI conditions can be combined to identify potential entries at overbought or oversold levels.
- Dual-signal mode requires both indicators to agree before entering.
- Candle direction and body size act as additional entry filters.
- The document gives no performance results, and its brief backtest settings do not establish profitability.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.