EMA RSI ATR Hidden Div Strat - 1 Min

The EMA RSI ATR Hidden Div Strat - 1 Min indicator is a comprehensive trend-following strategy designed to capture entries based on bullish and bearish hidden divergences within an established trend. It utilizes a combination of Exponential Moving Averages (EMA) for trend filtering, Stochastic RSI for momentum confirmation, and multiple exit logic options including ATR and lookback-based levels.

Usage

The strategy is primarily designed for lower timeframes like the 1-minute chart but can be adapted for higher periodicities. To enter a position, the script requires a confluence of three main factors:

• Trend Filter: Price must be above a short-term EMA (e.g., 50) which in turn must be above a long-term EMA (e.g., 150) for longs.
• Hidden Divergence: A hidden divergence must be detected within a specific lookback window to signal trend continuation.
• Momentum Cross: The Stochastic %K line must cross above the %D line to trigger a long entry (or below for a short entry).

Details

This strategy automates a popular trend-continuation technique. Hidden bullish divergence occurs when the price makes a higher low (HL) while the oscillator makes a lower low (LL), suggesting that despite a pullback in momentum, the price action remains strong.

The implementation features two distinct exit modules:

1. Lowest Low / Highest High: Sets the stop loss at the lowest low (for longs) or highest high (for shorts) of a user-defined lookback period, with the take profit calculated via a multiplier of that risk.
2. ATR-Based Exits: Uses the Average True Range to set volatility-adjusted trailing or fixed stop loss and take profit targets.

Settings

EMA Settings

• EMA1 / EMA2: Sets the lengths for the short-term and long-term exponential moving averages used for trend direction.

Stochastic Settings

• K / D / Smooth: Parameters for the Stochastic oscillator calculation and its signal line smoothing.

Hidden Divergence

• RSI Period / Source: Parameters for the RSI used to detect divergences.
• Pivot Lookback Right/Left: Defines the number of bars required to confirm a pivot point.
• Range Max/Min: The window of bars in which a divergence must occur to be considered valid for an entry.

Exit Settings

• Enable Lowest low/highest high exit: Toggles the lookback-based exit logic.
• Lowest Low / Highest High Lookback: The number of bars to check for identifying the support/resistance level for the stop loss.
• Profitfactor: The risk-to-reward ratio for the target price.

ATR Settings

• Enable ATR exit: Toggles the ATR-based exit logic.
• ATR Profitfactor / Stopfactor: Multipliers applied to the ATR value to determine exit levels.
• ATR Length: The lookback period for the Average True Range calculation.

FAQ

How do I use the EMA RSI ATR Hidden Div Strat - 1 Min?

You can apply the script to your chart and adjust the EMA and Divergence settings to match the volatility of the specific asset and timeframe you are trading.

Can I trade both Long and Short positions?

Yes, the strategy includes toggles in the "Order Conditions" section to enable or disable long and short trades independently.

How do I get access to the EMA RSI ATR Hidden Div Strat - 1 Min?

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