Momentum Breakouts with SMA, MACD, Stochastic RSI, and Swing Exits

Summary

This strategy combines a long-term moving average filter with momentum indicators to time breakouts. A long signal requires price to cross above the 200-period simple moving average, MACD to be positive, and smoothed Stochastic RSI %K to exceed its upper threshold. A short signal applies the inverse conditions below the average and lower threshold. Indicator lengths and thresholds are configurable.

Exits use the latest confirmed swing high as a profit target and swing low as a stop for longs, with the levels reversed for shorts and optional buffers beyond the pivots. The script checks that both levels lie on the appropriate sides of the entry price before placing orders. It supplies no performance results or asset-specific guidance, so profitability, sensitivity to pivot confirmation delays, and the effects of costs require independent evaluation.

Key ideas

• Long entries require an upward cross of the 200-period average, positive MACD, and strong Stochastic RSI momentum.
• Short entries use a downward cross, negative MACD, and weak Stochastic RSI momentum.
• Recent confirmed swing highs and lows define direction-specific profit targets and stop levels.
• Buffer settings adjust exit levels beyond the referenced pivots.
• The script provides no evidence of strategy performance across markets or timeframes.

Tags

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