Combining Supertrend Direction with RSI Momentum and Threshold Exits

Summary

This strategy combines a Supertrend direction signal with RSI as a momentum filter. It opens a long when the Supertrend is bullish and RSI is above its midpoint, and opens a short when the Supertrend is bearish and RSI is below that level. The example sets ATR period and Supertrend factor, along with RSI length and overbought and oversold thresholds, as inputs.

Exit rules close longs when RSI rises above the overbought threshold and shorts when RSI falls below the oversold threshold. The script also plots the trend line and entry markers and provides alert conditions. The document describes the rules but includes no backtest results or performance evidence. Because the exits rely on RSI thresholds rather than a stated protective stop or fixed loss limit, the risk profile and results need separate evaluation across instruments and timeframes.

Key ideas

• The strategy uses Supertrend direction to set trade bias and RSI relative to its midpoint to confirm momentum.
• Bullish conditions open longs, while bearish conditions open shorts.
• RSI overbought and oversold thresholds close the corresponding positions.
• ATR, Supertrend, and RSI parameters are configurable in the example.
• The document reports no performance results and specifies no fixed protective stop.

Tags

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