Strategy that combines Parabolic SAR for trend direction and RSI for entry confirmation with oversold/overbought conditions.
Here the Parabolic SAR outlines the prevailing trend and RSI measures exhaustion. Trades are opened once both indicators signal the same direction.
The combination is appealing to those who like trailing stops, since SAR also provides a dynamic exit. The stop placement follows the SAR curve.
Entry Criteria:
Long: Close > SAR && RSI < RsiOversold
Short: Close < SAR && RSI > RsiOverbought
[]Long/Short: Both
[]Exit Criteria:
Long: Close < SAR
Short: Close > SAR
[]Stops: Uses Parabolic SAR as a trailing stop
[]Default Values:
SarAf = 0.02m
SarMaxAf = 0.2m
RsiPeriod = 14
RsiOversold = 30m
RsiOverbought = 70m
CandleType = TimeSpan.FromMinutes(5).TimeFrame()
[*]Filters:
Category: Mean reversion
Direction: Both
Indicators: Parabolic SAR, Parabolic SAR, RSI
Stops: Yes
Complexity: Intermediate
Timeframe: Mid-term
Seasonality: No
Neural Networks: No
Divergence: No
Risk Level: Medium