Counter-Trend Reversals Using CCI or Momentum, RSI, and EMA

Summary

This short-term reversal strategy combines a zero-line crossover in either CCI or Momentum with RSI extremes and an optional RSI divergence check. A long signal requires a recent oversold reading and an upward crossover; a short signal requires a recent overbought reading and a downward crossover. The 100-period EMA acts as a counter-trend filter: longs are considered below it and shorts above it. The document describes use on an ETH/USDT five-minute chart and includes chart markers and alerts.

The method relies on several confirmations, but no backtest results or performance measurements are provided. The source code shown defines the crossover, recent RSI threshold, a local RSI turning pattern for optional divergence, and price relative to the EMA. The document notes risks from entering against strong trends, delayed signals, parameter sensitivity, and the absence of explicit stop-loss logic; it recommends testing and adding risk controls before practical use.

Key ideas

• The entry trigger can be selected as a zero-line cross in CCI or Momentum.
• RSI must have recently reached the specified oversold or overbought region.
• Optional RSI turning patterns provide an additional divergence-style confirmation.
• The 100-period EMA filter places long entries below the average and short entries above it.
• The described implementation has no defined stop-loss rule and reports no performance evidence.

Tags

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