Combining Supertrend and RSI for Directional Entries and Exits

Summary

This strategy combines Supertrend direction with RSI as a confirmation filter. It opens a long position when Supertrend is bullish and RSI is above 50, and opens a short position when Supertrend is bearish and RSI is below 50. The script sets an ATR period of 10 and a Supertrend factor of 3, with RSI calculated over 14 periods. It closes longs when RSI exceeds 70 and shorts when RSI falls below 30, and plots the indicator and entry signals.

The document provides executable strategy logic but no backtest settings, performance report, or empirical evidence that the rules are profitable. The RSI exit thresholds differ from the midpoint used to confirm entries, so positions may remain open after the trend or confirmation condition changes. The method is presented as trend following with confirmation; transaction costs, position sizing, stop placement, and behavior across markets are not discussed.

Key ideas

• The strategy uses Supertrend direction and an RSI threshold above or below 50 to confirm entries.
• It opens long positions in bullish Supertrend conditions and short positions in bearish conditions.
• RSI readings above 70 close longs, while readings below 30 close shorts.
• The script gives entry and exit rules but provides no performance evidence or backtest results.

Tags

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