RSI Alligator Crossovers for Trend Signals and Trade Exits

Summary

The strategy builds an RSI analogue of the Alligator indicator from three lookback periods: 5, 13, and 34. It enters long when either faster RSI crosses above the 34-period line while the other faster line is already above it; mirrored crossunders create short entries. The script includes percentage-based stop and profit inputs, although its displayed exit call is tied to the long entry and does not show a corresponding short exit. The author also suggests closing trades when the 5- and 13-period lines cross against the position.

The accompanying notes report informal tests on BTCUSD across hourly to daily charts. Heikin Ashi candles appeared to reduce signal frequency and make trends easier to read, while the author observed the strongest profitability on four- to twelve-hour charts and described daily signals as safer. These are personal observations rather than controlled results: no sample period, performance statistics, transaction costs, or comparison method is provided. The author had tested only BTCUSD and cautions that Heikin Ashi prices can diverge from market prices during large moves.

Key ideas

• Three RSI lookbacks are combined to create crossover-based long and short signals.
• A faster RSI crossing the 34-period RSI is filtered by the position of the other faster RSI.
• The notes suggest using opposing short-period crossovers as an earlier discretionary exit.
• The author reports informal BTCUSD observations favoring Heikin Ashi and four- to twelve-hour charts.
• The reported performance observations lack controlled testing details and broad asset validation.

Tags

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