Multiple MACD RSI simple strategy

The Multiple MACD RSI simple strategy tool is a trend-following system that combines dual MACD sets with Stochastic RSI and price action filters to identify high-probability entry and exit points. It aims to filter out noise by requiring confluence between multiple time-sensitive indicators before triggering a trade.

Usage

The strategy is designed for trend-following across various assets. A long signal is generated when both the short-term and long-term MACD histograms are positive, provided the price action confirms an "uptrend" (calculated via a specific close and high ratio). Conversely, a short signal triggers when both MACD histograms are negative and price action shows a "downtrend" (close and low ratio), with an additional filter requiring the Stochastic RSI D line to be above a specific threshold to ensure momentum.

Details

The strategy employs several unique logic components:

• Dual MACD Confluence: By using two sets of MACD parameters (one faster, one slower), the script ensures that both short-term momentum and longer-term trends are aligned.
• Price Action Filters: Instead of relying solely on oscillators, the script uses "Uptrend" and "Downtrend" calculations based on the ratio of current price levels (High/Low/Close) relative to the previous period.
• Stochastic RSI Weighting: The Stochastic RSI is used as a secondary filter for sell triggers, ensuring that short positions are only entered when there is sufficient stochastic momentum (D line > 20).
• Time Filtering: A built-in year filter allows users to restrict backtesting to more recent market regimes, helping to avoid skewed results from legacy data.

Settings

• MACD 1 (Fast/Slow/Signal Length): Parameters for the first MACD set, typically used for short-term trend detection.
• MACD 2 (Fast/Slow/Signal Length): Parameters for the second MACD set, typically used for long-term trend detection.
• Stoch RSI (K/D/RSI/Stochastic Length): Settings to define the sensitivity and smoothing of the Stochastic RSI filter.
• RSI Source: The price source used for the RSI calculation.
• Year to start backtesting from: Filters the strategy execution to only start after a specific year.

FAQ

How do I access the Multiple MACD RSI simple strategy?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Can I use this for intraday trading?

Yes, while the default settings are versatile, the parameters for the dual MACD sets and Stochastic RSI can be adjusted to suit lower timeframes.

What does the "Uptrend" and "Downtrend" setting do?

These are internal calculations that compare the sum of current price points (Close + High or Close + Low) against the previous period to ensure the price is physically moving in the direction of the trade.