Supertrend and RSI Confirmation with Threshold-Based Exits

Summary

This strategy combines Supertrend direction with the Relative Strength Index to generate long and short entries. It enters long when Supertrend indicates a bullish state and RSI is above 50, and enters short when Supertrend is bearish and RSI is below 50. The script also plots the Supertrend line and marks entry conditions for chart review and alerts.

Positions are closed when RSI crosses into the specified extreme zones: above 70 for long positions and below 30 for short positions. These are configurable inputs, as are the RSI period and the Supertrend’s average true range period and factor. The document characterizes the setup as trend following with confirmation but gives no trade examples, backtest results, or evidence that the thresholds improve returns. It does not specify a separate stop-loss or profit target, and its behavior depends on market, timeframe, and execution assumptions.

Key ideas

• The strategy pairs Supertrend direction with an RSI threshold around 50 for entries.
• It takes long signals in the bullish Supertrend state and short signals in the bearish state.
• RSI extreme thresholds trigger position closures.
• ATR period, Supertrend factor, RSI period, and exit thresholds are configurable.
• The document provides no performance evidence or explicit stop-loss and profit-target rules.

Tags

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