MA & RSI Strategy

The Negroni MA & RSI Strategy indicator is a comprehensive backtesting tool designed to evaluate moving average trend zones combined with RSI momentum and higher timeframe confluence.

Usage

This strategy allows users to test two primary entry methodologies based on the interaction between price and a defined "MA Zone" (the area between the Fast and Trend MAs):

• Retest Entry: Triggers when price pulls back into the MA zone from above (for longs) or below (for shorts) while the trend remains intact.
• Breakout Entry: Triggers when price breaks out of the MA zone in the direction of the trend.

Users can combine these entries with multiple exit strategies simultaneously, such as trailing exits based on MA crosses, fixed percentage targets, or dynamic ATR-based risk management. The tool is highly flexible, allowing for the "disabling" of specific confluences by adjusting their parameters (e.g., setting RSI buy levels to 1).

Details

The script constructs a trend hierarchy using three primary moving averages (Fast, Trend, and Slow) and up to two Higher Timeframe (HTF) moving averages.

• MA Types: Support for SMA, EMA, HMA, and VWMA.
• Trend Zone: Defined by the relationship between the Fast and Trend MAs.
• Confluence Filters: Trades are only considered if the Fast MA > Trend MA > Slow MA for longs, and if price is above the selected HTF MA.
• Dynamic Risk: The ATR-based SL/TP option adjusts to current market volatility, providing wider stops during high volatility and tighter stops during consolidation.

Settings

Trade Entry Strategy

• Retest Entry strategy: Enables entries when price crosses into the MA trend zone.
• Breakout Entry strategy: Enables entries when price breaks out of the MA trend zone.

Risk Management Strategy

• No SL/TP: Uses a simple cross-back of the Fast MA as the exit signal.
• Static % SL/TP: Applies fixed percentage-based stop loss and take profit levels.
• Dynamic ATR SL/TP: Uses Average True Range multiples to set volatility-adjusted exit levels.
• ATR Length/Multipliers: Configures the sensitivity and distance of dynamic exits.

Indicator Parameters

• RSI Options: Configures the period and threshold levels for momentum filtering.
• MA Options (Fast, Trend, Slow): Sets the type, source, and length for the three primary moving averages.
• Fixed HTF MA Options: Defines the timeframe and type for the higher timeframe filters used for trend confirmation.

FAQ

How do I access the Negroni MA & RSI Strategy?

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

Can I use different types of moving averages together?

Yes, the script allows you to mix and match SMA, EMA, VWMA, and HMA for each individual component (Fast, Trend, Slow, and HTF).

How do I disable the RSI filter?

To effectively disable the RSI confluence, set the "RSI Buy signal" to 1 and the "RSI Sell signal" to 99.