Trend Confirmation with EMA, MACD, and RSI

Summary

This strategy combines moving-average direction, MACD momentum, and RSI strength to trigger trades only when all three signals align. It enters long when the faster EMA crosses above the slower EMA while MACD is above its signal line and RSI is above the midpoint; the short setup reverses those conditions. MACD crossovers provide the stated exit rules, and a dashboard and alerts are described as monitoring aids.

The document explains the indicator logic but provides no performance results. It notes that all three indicators lag, that sideways markets can produce repeated false signals, and that fixed parameters may not suit every market. The source code also shows percentage-of-equity sizing, though its default differs from the prose. There is no price-based stop loss. Suggested extensions include volatility and volume filters, adaptive parameters, and fixed or trailing stops; these are proposals rather than tested improvements.

Key ideas

• Entries require EMA crossover, MACD direction, and RSI position to agree.
• Long and short positions exit on an opposing MACD crossover.
• The strategy relies on lagging indicators and may struggle in ranging markets.
• The document reports no backtest performance and identifies the absence of price-based stops.

Tags

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