Long-Only RSI and MACD Momentum Breakout with Optional Filters

Summary

This long-only framework combines RSI and MACD signals to seek upward momentum. An entry can occur when RSI crosses above its midpoint while MACD is bullish, or when MACD crosses above its signal line while RSI is already at or above the midpoint. Optional filters require price to be above an EMA or limit entries to a window after RSI reaches an oversold level. Exits use a downward RSI midpoint cross, a bearish MACD cross with a nonpositive histogram, or percentage-based profit and loss limits. A position-state variable gates entries and exits.

The document discusses false signals in ranging markets, indicator lag, stop placement, and the limitations of long-only exposure. It proposes multi-timeframe confirmation, adaptive parameters, volatility-aware stops, and position sizing as possible extensions. The available material describes rules and configurable settings but supplies no backtest results; its favorable performance language is therefore unsupported by evidence here. The extracted source also shows different risk percentages from those stated as defaults in the prose, so settings should be checked before evaluation.

Key ideas

• The system combines RSI midpoint behavior and MACD direction or crossovers to generate long entries.
• Optional EMA trend and recent-oversold filters can restrict when entries are allowed.
• Exits use momentum reversals or take-profit and stop-loss thresholds, with state tracking to limit duplicate signals.
• The strategy is long-only and may produce false signals in sideways markets or enter after a move has already begun.
• The document provides no measured results, and its prose and source show differing risk parameter defaults.

Tags

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