Session-Limited Signals from EMA, HMA, RSI, and CCI Formations

Summary

This intraday strategy combines moving-average alignment with RSI and CCI thresholds to identify two opposing formations during a specified trading session. When a formation occurs, it tracks candle highs and lows and waits for price to cross a boundary before entering. The code associates the short setup with a close below the tracked low and the long setup with a close above the tracked high, despite comments that describe the break direction differently.

Stops are based on nearby candle lows or highs, with an optional maximum stop distance as a percentage of entry price. A target is set as a configurable multiple of that stop distance, and positions are closed during a designated end-of-day window. The script plots its indicators and trade levels. The document provides no backtest results or evidence that the thresholds work across markets. Its session times and instrument assumptions should be checked for the chart’s market, and the source’s formation and trade-state logic merits review before relying on the signals.

Key ideas

• The strategy filters setups using an ordered EMA and HMA arrangement together with RSI and CCI thresholds.
• It tracks the high and low of qualifying formation candles and triggers entries when price closes beyond a tracked boundary.
• Stop distance may be capped as a percentage of entry price, and the target uses a configurable multiple of that distance.
• The code restricts formations to a specified session and closes open positions in a separate end-of-day window.
• The document reports no performance results, and some code comments conflict with the implemented signal direction.

Tags

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