RSI Reversal Signals Filtered by a Long-Term Moving Average

Summary

This daily-signal concept combines RSI threshold reversals with a long-term price trend filter. A long signal occurs when RSI crosses upward through the oversold threshold while price is above the trend moving average; a short signal occurs when RSI crosses downward through the overbought threshold while price is below it. The described defaults are a 14-period RSI, thresholds of 30 and 70, and a 200-period simple moving average, with an option to disable the trend filter. Opposite signals close the existing position and open a position in the other direction.

The filter is intended to avoid taking RSI reversals against the broader trend, but it can delay signals and may not prevent repeated trades in sideways markets. The document suggests stops, sizing adjustments, volatility or volume filters, and more considered exits as possible extensions. It supplies no performance results; its published configuration uses one-minute DOGE/USDT data over a brief interval, despite the narrative describing daily operation, so it does not establish daily-strategy effectiveness.

Key ideas

• A long signal combines an upward RSI cross of the oversold threshold with price above the trend average.
• A short signal combines a downward RSI cross of the overbought threshold with price below the trend average.
• The default trend filter is a 200-period simple moving average, and it can be switched off.
• Opposite signals close the current side and open the other direction.
• The document offers no performance evidence, and its brief one-minute test configuration does not match the stated daily timeframe.

Tags

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