EMA200 and Stochastic RSI Entries with Candle Filters

Summary

The strategy combines a 200-period exponential moving average with Stochastic RSI and candle conditions to signal long or short entries. Long signals require price above the EMA, low Stochastic RSI values with a K-over-D crossover, a higher high, and a bullish candle meeting a minimum body-change and wick constraint. Short signals use the inverse trend and oscillator conditions, a lower low, and a qualifying bearish candle. The listed settings also include an ATR multiple and reward-to-risk ratio, although the shown entry code does not use them to set exits.

The document provides rules and source code but no performance results. Its prose describes candle body size relative to the previous candle, while the code checks the candle’s percentage change and wick ratio; it also describes a Stochastic RSI crossing the RSI, whereas the code crosses the K and D lines. These differences make the implemented rules less clear than the overview suggests. The document warns of whipsaws, volatility, and the risk that historical behavior may not persist.

Key ideas

• The EMA200 determines whether long or short signals are considered.
• Stochastic RSI K and D crossovers in extreme zones contribute to entry signals.
• Price highs or lows and candle shape provide additional filters.
• The listed ATR and reward-to-risk settings are not applied to exits in the shown code.
• The document gives no backtest results and cautions that signals can whipsaw.

Tags

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