Extreme Points Buy & Sell Ethereum Strategy
This strategy is primarily based on the 'Edri Extreme Points Buy & Sell' indicator, which combines elements from several technical analysis tools - CCI, Momentum, and RSI - to identify potential entry points for long and short trades.
The strategy takes a trading signal when the following conditions are met:
For a long trade:
1. A buy signal is triggered by the 'Edri Extreme Points Buy & Sell' indicator, based on a combination of CCI/Momentum cross up and RSI oversold levels. Regular bullish divergence is also considered if the 'Find Regular Bullish/Bearish Divergence' option is enabled.
2. The price has pulled back to or is below the 100-period exponential moving average (EMA). This pullback condition allows the trader to enter the market after a retracement during an uptrend.
For a short trade:
1. A sell signal is triggered by the 'Edri Extreme Points Buy & Sell' indicator, based on a combination of CCI/Momentum cross down and RSI overbought levels. Regular bearish divergence is also considered if the 'Find Regular Bullish/Bearish Divergence' option is enabled.
2. The price has pulled back to or is above the 100-period EMA. This pullback condition allows the trader to enter the market after a retracement during a downtrend.
The strategy uses the Average True Range (ATR) indicator to set the stop loss and take profit levels. The stop loss is set at a distance of 2*ATR from the entry price, and the take profit level is set at 4*ATR. This risk management approach scales the trade parameters based on market volatility, with wider stop loss and take profit levels during more volatile periods and narrower levels during less volatile periods.
This strategy can be used in various market conditions and on different timeframes, but it is always recommended to test it on historical data and ensure it aligns with the individual trader's risk tolerance and trading style before using it for live trading.
The strategy takes a trading signal when the following conditions are met:
For a long trade:
1. A buy signal is triggered by the 'Edri Extreme Points Buy & Sell' indicator, based on a combination of CCI/Momentum cross up and RSI oversold levels. Regular bullish divergence is also considered if the 'Find Regular Bullish/Bearish Divergence' option is enabled.
2. The price has pulled back to or is below the 100-period exponential moving average (EMA). This pullback condition allows the trader to enter the market after a retracement during an uptrend.
For a short trade:
1. A sell signal is triggered by the 'Edri Extreme Points Buy & Sell' indicator, based on a combination of CCI/Momentum cross down and RSI overbought levels. Regular bearish divergence is also considered if the 'Find Regular Bullish/Bearish Divergence' option is enabled.
2. The price has pulled back to or is above the 100-period EMA. This pullback condition allows the trader to enter the market after a retracement during a downtrend.
The strategy uses the Average True Range (ATR) indicator to set the stop loss and take profit levels. The stop loss is set at a distance of 2*ATR from the entry price, and the take profit level is set at 4*ATR. This risk management approach scales the trade parameters based on market volatility, with wider stop loss and take profit levels during more volatile periods and narrower levels during less volatile periods.
This strategy can be used in various market conditions and on different timeframes, but it is always recommended to test it on historical data and ensure it aligns with the individual trader's risk tolerance and trading style before using it for live trading.