Supertrend and RSI for Trend and Momentum Entries

Summary

This strategy combines Supertrend direction with the Relative Strength Index (RSI) to qualify long and short entries. It uses a Supertrend based on a 10-period ATR and factor of 3, alongside a 14-period RSI. A bullish Supertrend direction with RSI above 50 triggers a long entry; a bearish direction with RSI below 50 triggers a short entry. The script closes longs when RSI rises above 70 and closes shorts when RSI falls below 30.

These rules pair a trend signal with a momentum threshold and use more extreme RSI levels for exits. The document includes chart labels and alert conditions, but supplies no backtest period, instrument, trading results, or discussion of risk controls such as position sizing or stop placement. The thresholds and indicator settings are therefore examples from the script, not evidence of robust performance. The logic may behave differently across markets and timeframes, and the listed conditions do not by themselves establish how the strategy handles all position transitions.

Key ideas

• Long entries require bullish Supertrend direction and RSI above 50.
• Short entries require bearish Supertrend direction and RSI below 50.
• The example uses a 10-period ATR with a Supertrend factor of 3 and a 14-period RSI.
• RSI above 70 closes a long, while RSI below 30 closes a short.
• No instrument, backtest results, or detailed position risk rules are provided.

Tags

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