RSI and MACD Momentum Changes for Long and Short Entries

Summary

This short-term strategy combines changes in RSI and MACD histogram momentum to trigger entries in either direction. It calculates RSI, forms a weighted recent RSI measure, and adds its change to the change in the MACD histogram. A configurable threshold on that combined signal opens a long when it rises past the positive level or a short when it falls past the negative level. Existing positions may be switched when an opposite signal appears.

The script also defines percentage-based stop-loss and take-profit distances and limits trading to a configurable date window. However, its stated stop and target orders are submitted only when an entry condition is true, so the code does not clearly maintain protective orders throughout an open trade. The displayed RSI thresholds and several MACD cross variables do not drive the entry logic. No backtest results are supplied, and the document gives no evidence that the method is profitable. Results would depend on market, timeframe, costs, and implementation details.

Key ideas

• Entries use a threshold applied to the combined changes in a smoothed RSI measure and MACD histogram.
• Positive combined momentum triggers a long entry, while negative momentum triggers a short entry.
• An opposite entry condition can reverse an existing position.
• The script offers a date range and percentage-based stop and target parameters.
• The document provides no performance results, and the displayed RSI bands do not control entries.

Tags

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