Weighted Ten-Indicator Confluence Scoring with ATR Trade Exits

Summary

This strategy combines ten technical signals into a weighted score: EMA trend, Supertrend, MACD, RSI, ADX and directional indicators, VWAP, Bollinger Bands, Stochastic RSI, OBV, and an ATR activity filter. Bullish conditions add their assigned weights, bearish conditions subtract them, and the total is normalized to a score between negative and positive extremes. Long or short entries require a threshold score plus selected trend, ADX, and volatility conditions.

Positions receive ATR-scaled stop and limit exits, while a weakening composite score can trigger an earlier close. The script exposes indicator thresholds and weights and displays factor states and the aggregate score. It gives the rules and example defaults but no backtest results, out-of-sample evidence, or comparison against simpler baselines. The many related indicators may also produce overlapping signals, so the composite score should not be read as independent confirmation or as evidence that the method has an edge.

Key ideas

• Ten weighted indicator conditions contribute bullish, bearish, or neutral information to a normalized composite score.
• Entries require a threshold score and additional trend, ADX, and ATR activity filters.
• ATR multiples define stop-loss and take-profit orders for open positions.
• Score deterioration can close positions before the fixed ATR exit levels are reached.
• The document describes configurable rules but provides no empirical validation or profitability evidence.

Tags

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