Combined Strategy Trading Bot (RSI ADX 20SMA)

The Combined Strategy Trading Bot (RSI ADX 20SMA) indicator is a multi-faceted trend-following and breakout tool that integrates trend direction, momentum, and volatility filters to identify high-probability trade entries.

Usage

This script functions as a comprehensive strategy by combining four primary technical components. Traders can use it to identify trend reversals or breakout opportunities:

• Trend Confirmation: The indicator uses a modified Supertrend logic alongside a 20-period Simple Moving Average (SMA). Long entries are typically considered when the price is above both the Supertrend line and the SMA.
• Momentum Filtering: The Relative Strength Index (RSI) is used to detect overbought or oversold conditions. In this specific strategy, RSI "overbought" levels are used to confirm strength for trend-following entries, while "oversold" levels or crosses below the SMA serve as exit signals.
• Volatility/Trend Strength: The Average Directional Index (ADX) is calculated internally to filter the Supertrend logic, ensuring the strategy responds to meaningful price movement.
• Channel Breakouts: The script includes a secondary logic based on the highest highs and lowest lows over a user-defined period to capture breakout moves outside of established price channels.

Details

The script executes several distinct calculations to generate signals:

• Directional Movement (ADX/DI): It calculates positive (+DM) and negative (-DM) directional indicators using smoothed moving averages to determine trend intensity.
• Modified Supertrend: This implementation utilizes ATR-based bands but incorporates an RSI-based initialization check to determine the starting direction of the trend.
• Channel Logic: The "Breakout Length" setting determines the lookback period for identifying price extremes (Highs/Lows), which then act as stop-entry levels for channel breakout trades.

Settings

• ADX Smoothing: Adjusts the sensitivity of the ADX calculation for trend strength filtering.
• DI Length: Sets the period for the Directional Indicators (+DI and -DI).
• RSI Overbought Level: The threshold used to confirm upward momentum for long entries (default is 70).
• RSI Oversold Level: The threshold used to trigger position exits (default is 30).
• Breakout Length: Defines the lookback period for the channel breakout strategy components.

FAQ

How do I access Combined Strategy Trading Bot (RSI ADX 20SMA)?

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 automated trading?

Yes, the script includes strategy.entry functions and integrated alerts, making it compatible with TradingView's strategy tester and external automation webhooks.

What timeframes work best for this strategy?

While it can be used on any timeframe, it is designed for trend-following; therefore, higher timeframes like 1H or 4H may provide more reliable signals by filtering out market noise.