EMA, RSI, and ADX Swing Trend Strategy with Stop and Trend Exits

Summary

This long-only swing strategy filters for an upward trend using price above the 200-period EMA and the 50-period EMA above the 200-period EMA. It also requires ADX above a configurable threshold, price above the fast EMA, and RSI crossing above 55 before entry. The script plots the three EMAs and marks position openings and closings.

Risk and exit rules combine a stop set 8% below average entry price with a close when price falls below the 50-period EMA. The code specifies full-equity sizing and prevents pyramiding. The document provides the rules and implementation but no backtest results or performance evidence. It does not define a short setup, and its description mentions a 20/50/200 moving-average alignment that the entry conditions do not fully enforce: they check the 50/200 relationship and price relative to the 20 EMA, but not 20 EMA above 50 EMA. The strategy’s behavior and suitability therefore require independent evaluation.

Key ideas

• The long entry requires price above the 200-period EMA and the 50-period EMA above the 200-period EMA.
• ADX must exceed its selected threshold, price must be above the fast EMA, and RSI must cross above 55.
• An 8% stop below average entry price and a close below the mid EMA provide exit conditions.
• The source implements a long-only strategy and supplies no performance results.
• The written description’s full moving-average alignment is stricter than the conditions coded for entry.

Tags

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