MACD + RSI + EMA Trend Strategy | Buy & Sell Signals with Alerts

What This Script Does

This strategy combines three well-known indicators — MACD (Moving Average Convergence Divergence), RSI (Relative Strength Index), and EMA (Exponential Moving Averages) — into a unified trading system. The purpose of this mashup is not simply to merge indicators, but to create a layered confirmation process where each tool plays a distinct role:

MACD provides the momentum entry trigger.

RSI ensures that entries are not taken in extreme overbought/oversold conditions.

EMA filter defines the overall market trend so trades align with the bigger picture.

By combining these three conditions, the script reduces noise and avoids false signals that might occur when any single indicator is used in isolation.

How It Works

Trend Filter (EMA):
The strategy plots two EMAs (default: 20 and 50). When the fast EMA is above the slow EMA, the system recognizes an uptrend. When the fast EMA is below the slow EMA, the system recognizes a downtrend.

MACD Momentum Signal:
A bullish signal occurs when the MACD line crosses above the signal line, suggesting upward momentum. A bearish signal occurs when the MACD line crosses below the signal line, suggesting downward momentum.

RSI Confirmation:
The RSI acts as a momentum filter. Buy signals require RSI to be above the oversold threshold (default: 30). Sell signals require RSI to be below the overbought threshold (default: 70).

Entry and Exit Rules

Buy Condition:

MACD line crosses above the signal line.

RSI is greater than oversold (default >30).

Fast EMA is above slow EMA (trend confirmation).

Sell Condition / Exit:

MACD line crosses below the signal line.

RSI is less than overbought (default <70).

Fast EMA is below slow EMA (trend confirmation).

Chart Features

Plots both EMAs on the chart for easy trend visualization.

Displays “BUY” and “SELL” labels when valid conditions occur.

Built-in alert conditions for automated trading systems or notifications.

Info label on the last bar shows current MACD, Signal, and RSI values.

Why This Is Useful

Many traders use MACD, RSI, or EMAs individually, but each has weaknesses:

MACD can lag in choppy markets.

RSI alone can stay overbought/oversold for long periods in strong trends.

EMAs provide trend direction but don’t give precise entry signals.

By combining them, this script creates a triple confirmation system: trend (EMA), momentum trigger (MACD), and momentum filter (RSI). This reduces false entries and helps traders stay aligned with higher-probability trades.

How to Use

Works across multiple assets (forex, stocks, crypto, indices, commodities).

Timeframes: suitable for intraday (5m, 15m) to swing trading (1H, 4H, daily).

Traders can use alerts to receive notifications when a Buy or Sell signal occurs.

Backtestable in TradingView’s Strategy Tester with customizable parameters.

Disclaimer

This script is for educational purposes only. It is not financial advice. Past performance does not guarantee future results. Always test before using in live trading, and apply proper risk management.