Trend hunter strategy - buy & sell

The Trend hunter strategy - buy & sell indicator is a versatile technical analysis tool that combines Supertrend, EMA, and RSI filters to identify high-probability trend-following and pullback entries.

Usage

This tool can be used to identify entries across different market regimes by selecting between two primary strategy modes:

• Simple Strategy: Focuses on standard trend reversals. A buy signal is generated when the Supertrend turns bullish, provided the price is above the EMA and the RSI meets the minimum threshold.
• Pullback Strategy: Designed for entering established trends during temporary corrections. It triggers a buy signal when the price action dips toward the Supertrend line (crossunder of previous low) while the overall trend remains bullish and secondary filters are met.

The indicator provides visual labels ("Buy" and "Sell") on the chart and can be filtered by trade direction (Long, Short, or Both) to align with higher-timeframe biases.

Details

The script integrates three core components to ensure signal quality:

• Supertrend: Acts as the primary trend engine, calculating support and resistance levels based on the Average True Range (ATR).
• Exponential Moving Average (EMA): Serves as a trend filter to ensure trades are only taken in the direction of the long-term momentum.
• Relative Strength Index (RSI): Used as a momentum oscillator to confirm that the price has enough strength (or has reached a specific exhaustion point) to justify an entry.

The logic is built to allow for precise backtesting by defining a specific start and end date, ensuring performance can be evaluated over historical data periods.

Settings

Strategy Selection

• Type Of Strategy: Choose between "Pullback" (entry on corrections) or "Simple" (entry on trend flips).

Supertrend Settings

• ATR Length: Sets the lookback period for the Average True Range calculation.
• Factor: The multiplier applied to the ATR to determine the distance of the Supertrend line from the price.

EMA Settings

• Ema Condition On/Off: Toggles the EMA trend filter.
• Ema Length: Sets the period for the EMA (e.g., 200 for long-term trend).
• Ema Source: Defines the price data used for the EMA calculation.

RSI Settings

• Rsi Condition On/Off: Toggles the RSI momentum filter.
• RSI Length: The lookback period for the RSI calculation.
• RSI BUY/SELL Level: The specific thresholds required to validate trade signals.

Backtest & Direction

• Start/End calculations: Defines the date range for indicator processing.
• Trade Direction: Filters signals to show only Longs, only Shorts, or both.

FAQ

How do I use the Pullback mode effectively?

The Pullback mode is best used in trending markets where you want to "buy the dip." It waits for the price to test the Supertrend level before issuing a signal, potentially offering a better risk-to-reward ratio than the Simple mode.

Can I use this for scalping?

Yes, by adjusting the ATR Factor to a lower value and reducing the EMA length, the indicator can be tuned for shorter timeframes and faster price movements.

How do I access Trend hunter strategy - buy & sell?

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