Ichimoku EMA RSI - Crypto only long Strategy

The Ichimoku EMA RSI - Crypto only long Strategy indicator provides a systematic approach to trend-following in cryptocurrency markets by combining Ichimoku Cloud components with trend-filtering moving averages and momentum oscillators.

Usage

This strategy is designed primarily for capturing long-side momentum in trending markets. To use the strategy, the script identifies entries based on the following logic:

• Ichimoku Lead Lines: The green lead line (Lead 1) must be above the red lead line (Lead 2).
• Price Action: A green candle must close above the green lead line to trigger a long entry.
• Exit Strategy: A long position is closed when a red candle closes below the green lead line.

Details

The script utilizes the Senkou Span components of the Ichimoku Kinko Hyo system to determine the primary trend direction. By focusing on the relationship between Lead 1 and Lead 2, the indicator isolates periods of bullish expansion. To reduce false signals and drawdown, the strategy includes optional filtering layers:

• Exponential Moving Averages (EMA): When enabled, long positions are only permitted if a faster EMA is trading above a slower EMA, ensuring the broader trend is upward.
• Stochastic RSI: This oscillator serves as a momentum filter, requiring the K line to be above the D line for an entry to be valid, ensuring the entry occurs during a period of positive momentum.

Settings

Filtering

• Enable EMA?: Toggles the use of EMA trend filtering.
• Enable Stochastik RSI?: Toggles the use of the Stochastic RSI momentum filter.

EMA Parameters

• EMA 1: Sets the length of the fast exponential moving average.
• EMA 2: Sets the length of the slow exponential moving average.

Stochastic RSI Parameters

• RSI K Line: Smoothing period for the K line.
• RSI D Line: Smoothing period for the D line.
• RSI Length: Lookback period for the RSI calculation.
• Stochastik Length: Lookback period for the Stochastic calculation.
• RSI Source: The price source used for the RSI calculation (e.g., Close).

Ichimoku Parameters

• Ichi Conversion Line Length: Period for the Tenkan-sen calculation.
• Ichi Base Line Length: Period for the Kijun-sen calculation.
• Ichi Lagging Span 2 Length: Period for the Senkou Span B calculation.
• Ichi Displacement: The number of bars the lead lines are shifted forward.

Date Range

• From/To Day, Month, Year: Defines the backtesting window for the strategy execution.

FAQ

How do I use the filters in this strategy?

You can toggle the "Enable EMA?" and "Enable Stochastik RSI?" settings in the inputs menu. Enabling these often reduces the number of trades but can improve the quality of the entries by ensuring multiple indicators align.

What timeframes and assets is this best suited for?

While originally tested on the ETH/USDT 4-hour chart, the logic is applicable to various crypto pairs. Users should adjust the EMA and Ichimoku lengths when moving to different timeframes or asset classes like Forex.

How do I access this indicator?

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