EWO and RSI Signals with Exhaustion and Breakout Filters

Summary

This strategy combines the Elliott Wave Oscillator (EWO), RSI, Money Flow Index (MFI), and volume to time long and short signals. Early alerts flag low RSI with an EWO turn from below zero for potential buys, or high RSI with a weakening positive EWO for potential sells. A primary signal is limited to one per direction until the opposite signal occurs.

For a buy, RSI must cross above 40, MFI must be above 30, EWO must be rising, and volume must exceed 80% of its moving average. Price must also close above the prior lookback high unless RSI has previously fallen below the oversold threshold, which sets a flag that relaxes the breakout condition until a buy. Sells use an RSI cross below 60, MFI below 70, falling EWO, and the same volume check. The document provides rules and configurable defaults, but no performance results. The oversold flag has no time expiry, and the strategy gives no explicit stop-loss or position-sizing method, so its risk controls and effectiveness require independent evaluation.

Key ideas

• A buy requires RSI to cross above 40, rising EWO, MFI above 30, and volume above a fraction of its moving average.
• A close above the recent high confirms a buy unless a prior oversold reading has activated the exhaustion flag.
• A sell requires RSI to cross below 60, falling EWO, MFI below 70, and sufficient volume.
• Pre-signals identify possible turns, while primary signals are limited to one per direction until an opposite signal appears.
• The document supplies no performance evidence or explicit stop-loss and position-sizing rules.

Tags

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