The Vela Superada strategy trades a two-candle reversal pattern. A bullish setup occurs when a bearish candle is immediately followed by a bullish candle that closes above the prior open. Trades are filtered with a short-term EMA, RSI and MACD trend to avoid counter-trend signals. Both long and short sides can be enabled.
The strategy employs percentage-based take profit and stop loss levels and dynamically tightens a trailing stop once price moves favorably. This allows capturing extended moves while protecting against reversals.
- Entry Criteria:
- Long: Previous candle bearish, current bullish, close and previous close above EMA, RSI < 65, MACD rising.
- Short: Previous candle bullish, current bearish, close and previous close below EMA, RSI > 35, MACD falling.
- Long/Short: Configurable (long by default).
- Exit Criteria:
- Trailing stop or opposite signal.
- Stops: Percent-based stop loss and take profit.
- Default Values:
- EmaLength = 10
- RsiLength = 14
- ShowLong = True
- ShowShort = False
- TpPercent = 1.2
- SlPercent = 1.8
- Filters:
- Category: Pattern + indicators
- Direction: Both
- Indicators: EMA, RSI, MACD
- Stops: Yes
- Complexity: Medium
- Timeframe: Any
- Seasonality: No
- Neural networks: No
- Divergence: Yes
- Risk level: Medium