Long-Only First-Break Strategy Using EMA 9 and RSI 50

Summary

This long-only strategy combines a nine-period exponential moving average with a fourteen-period Relative Strength Index. It enters when the close is above the EMA and RSI is above 50, but only on the first bar where both conditions become true after not holding on the previous bar. It exits when the close falls below the EMA. The script plots the EMA and marks qualifying entry and exit bars for chart review.

The document supplies the rules and code, but no backtest statistics, tested instrument, chart timeframe, or evidence for the claim that the method reduces noise. The RSI threshold acts as a momentum filter, while the EMA provides a price-trend condition; neither guarantees follow-through. No stop loss, profit target, or position-sizing method beyond a default equity percentage is described, so performance and risk depend on implementation and market conditions.

Key ideas

• The strategy takes long positions only.
• An entry requires the close above the nine-period EMA and RSI above 50.
• A signal is limited to the first bar on which both entry conditions become true.
• The position closes when price falls below the EMA.
• The document gives no performance results or explicit trade-risk controls.

Tags

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