Pump Cool-Off and New-High Signals for Shorting

Summary

This short-selling system looks for signs of a rapid price surge and then seeks entries after momentum cools. A pump is flagged when RSI reaches 70 or when volume exceeds 1.5 times its 20-period average alongside a one-bar rise above 5%. The post-pump setup waits for RSI to fall to 60 or below and for price or volume activity to ease. A separate mode shorts a fresh 20-period high when no pump is active. An existing short is closed if a new pump starts; the stated profit target is 2% and stop is 6%.

The document also describes chart zones and a configurable wait after a pump ends. Its Ethereum futures test configuration covers about a month, but no performance results are given. There is a notable mismatch between the prose and source: the prose presents new highs as an immediate short setup, while the code does not require the cool-off condition for that entry. Shorting new highs can also expose the strategy to continued momentum, and the brief test configuration cannot establish reliability.

Key ideas

• The strategy flags potential pumps using elevated RSI or a strong one-bar price rise combined with unusually high volume.
• A post-pump short requires RSI to cool and price or volume activity to ease, subject to the configured wait.
• A separate rule shorts a fresh 20-period high when no pump is active.
• The source closes shorts when a pump resumes and uses a 2% profit target with a 6% stop.
• The published Ethereum futures configuration reports no results, and the new-high entry rule differs from the prose description.

Tags

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