RSI Oversold Entries with a Two-Stage Price Averaging Plan

Summary

This Pine Script strategy describes a two-stage long entry using RSI and price thresholds. The first entry requires RSI to cross below its oversold level while price is at or below a user-set limit. After recording the first fill, it sets a second-entry level a specified percentage below that fill; another oversold cross at or below this level can trigger the second entry. The script allows up to two entries and includes configurable take-profit, stop-loss, and RSI-based exit options.

The source identifies micro Nasdaq futures as a testing target and says the method is intended for several asset types, but this excerpt provides no backtest dates, results, or evidence of performance. It is incomplete: the displayed source ends before the order and exit logic, so those behaviors cannot be fully assessed. The averaging approach adds exposure as price falls, and the excerpt does not specify a maximum holding period or a complete risk-management plan.

Key ideas

• The first long entry requires an RSI oversold cross and a close at or below a configured price limit.
• A second entry requires another oversold cross after price falls by a configured percentage from the first fill.
• The script tracks entry fills and limits pyramiding to two entries.
• Take-profit, stop-loss, and RSI exit settings are configurable, though their full implementation is not shown in the excerpt.
• No performance results are supplied, and averaging into a falling market can increase exposure.

Tags

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