MACD, RSI, ADX, and Support-Resistance Reversal Strategy

Summary

This strategy combines MACD crossovers, RSI, ADX, and pivot-based support and resistance to generate long or short entries. The code requires a MACD crossover, RSI on the corresponding side of 50, directional strength from the DI lines, ADX above its threshold, and a close beyond a pivot level. It also offers an inverse mode and direction selection.

Exits use two profit targets and a stop based on a percentage of the average entry price. After the first target is reached, the code adjusts the remaining exit to use the entry price as its stop. The document describes a Binance BTC/USDT futures backtest setup over about a month, but gives no performance results. Its claims about filtering false signals and improving win rate are not supported by reported metrics. Trend reversals can be misread, and a new trend may not persist long enough to reach the targets.

Key ideas

• Entries require multiple conditions across MACD, RSI, directional indicators, ADX, and pivot levels.
• The code uses directional movement comparisons in addition to the ADX threshold.
• Users can select long-only, short-only, both directions, or invert the signals.
• Exits scale out at profit targets and use a percentage-based stop that moves to entry after the first target.
• The published backtest configuration does not include performance evidence.

Tags

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