This is a very simple script which gives reliable signals for buying and selling in short term. I came across this strategy a long time before in some website and coded it here. I had been using this for a long time and made good profits.
Idea is very simple, a buy call is triggered when RSI is greater than 75 and ADX is greater than 25. Sell call is triggered when RSI is lesser than 25 and ADX is again greater than 25. To remove false signals I always use it with EMA(close,8) which is also included as part of the code.
The ideal chart resolution is 1 day, below this the indicator is not reliable. Haven't tested this indicator for anything other than daily chart.
Refer the snapshots for more details.For any queries, please comment or PM me.
@vipmen143, Again, this is available for everyone to use directly. Please add it to your chart and you will be able to see the signals.
mastermind9631
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For the sell signal, should the candle be brushing against the EMA?
MuthiahM
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@mastermind9631, Yes, for sell, EMA should be brushing the top of the candle. Additionally if the candle is RED then chances are high that it will be successful. Backtest it with a few of your favorite scripts and see how it works. :-) Happy trading.