EWO and RSI Signals with Volume and Exhaustion Filters

Summary

The visible script combines the Elliott Wave Oscillator (the difference between fast and slow simple averages of the midpoint), RSI, money flow index, and a volume average. Its preliminary buy signal looks for RSI below 40 while the oscillator rises below zero; its preliminary sell signal looks for RSI above 60 while the oscillator falls above zero. A buy requires RSI to cross above 40, money flow to exceed 30, a rising oscillator, and volume above a fraction of its average, along with either a recent oversold state or a close above the prior lookback high. A sell uses a downward RSI cross, money flow below 70, a falling oscillator, and the volume filter.

The visible portion resets the oversold state after a raw buy and limits repeated primary signals to alternating buy and sell signals before placing long or short entries. It includes alerts and configurable indicator lengths. The excerpt is cut off, and provides no exit rules, test period, performance statistics, or evidence that the filters improve results. The oversold-state and signal-frequency logic may affect which setups qualify, so results would depend on implementation details and market data.

Key ideas

• The strategy combines EWO direction, RSI thresholds, money flow, and relative volume to filter entries.
• A buy requires an RSI rise through 40 and a rising oscillator, with a breakout or previously recorded oversold condition as additional confirmation.
• A sell requires RSI to fall through 60, a declining oscillator, weak money flow, and sufficient relative volume.
• The script records oversold conditions and limits repeated primary signals to alternating directions.
• The excerpt provides no exit logic or performance evidence, so its effectiveness cannot be established from the available text.

Tags

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