RSI + Smoothed HA Strategy

🚀 RSI + SMOOTHED HEIKEN ASHI STRATEGY (TRAILING TP, 1% SL) 📊
🎯 STRATEGY OVERVIEW
This professional trading strategy combines MOMENTUM ANALYSIS with TREND CONFIRMATION using two powerful technical indicators. The system executes LONG-ONLY POSITIONS when bullish conditions align, featuring AUTOMATED RISK MANAGEMENT with a fixed stop loss and dynamic trailing exit.

⚙️ CORE COMPONENTS
📈 INDICATOR 1: RELATIVE STRENGTH INDEX (RSI)
CALCULATION: Standard 14-period RSI (configurable)

ENTRY THRESHOLD: 55 LEVEL (adjustable parameter)

PURPOSE: Identifies MOMENTUM STRENGTH and OVERBOUGHT CONDITIONS

VISUAL: Blue RSI line with gray threshold level plotted separately

🕯️ INDICATOR 2: DOUBLE-SMOOTHED HEIKEN ASHI
UNIQUE FEATURE: DOUBLE EMA SMOOTHING applied to Heiken Ashi candles

SMOOTHING LAYERS:

FIRST LAYER: EMA applied to raw OHLC data (default: 10 periods)

SECOND LAYER: EMA applied to Heiken Ashi values (default: 10 periods)

COLOR SCHEME:

🟢 LIME GREEN: Bullish candle (close > open)

🔴 RED: Bearish candle (close < open)

BENEFIT: REDUCES MARKET NOISE while maintaining trend clarity

🎮 ENTRY CONDITIONS
📈 LONG POSITIONS ACTIVATE WHEN ALL THREE CONDITIONS CONVERGE:

RSI MOMENTUM: RSI ≥ 55 (configurable level)

TREND CONFIRMATION: Current smoothed Heiken Ashi candle is GREEN

TREND REVERSAL SIGNAL: Previous smoothed Heiken Ashi candle was RED

✅ ENTRY LOGIC: This triple-filter approach ensures trades are taken only during CONFIRMED BULLISH SHIFTS with underlying momentum strength.

🛡️ RISK MANAGEMENT SYSTEM
⛔ STOP LOSS PROTECTION
FIXED 1% RISK PER TRADE

AUTOMATIC CALCULATION: Stop placed at 99% of entry price

IMMEDIATE ACTIVATION: Engages upon position entry

BENEFIT: CAPS MAXIMUM LOSS regardless of market volatility

💰 TRAILING TAKE-PROFIT MECHANISM
DYNAMIC EXIT STRATEGY: Tracks trend continuation

EXIT CONDITION: Closes position when smoothed Heiken Ashi turns RED

ADVANTAGE: LOCKS IN PROFITS during trend reversals

LOGIC: Allows winners to run while protecting gains

💼 POSITION SIZING
CAPITAL ALLOCATION: 10% of equity per trade (fully customizable)

INITIAL CAPITAL: $10,000 (user-adjustable)

FLEXIBILITY: Compatible with various account sizes

✨ KEY ADVANTAGES
🎯 PRECISE TIMING
Combines MOMENTUM FILTER (RSI) with TREND FILTER (Heiken Ashi)

Reduces false signals through CONFIRMATION SEQUENCE

🛡️ DISCIPLINED RISK CONTROL
PREDEFINED 1% STOP LOSS eliminates emotional decisions

SYSTEMATIC EXITS remove subjective profit-taking

👁️ VISUAL CLARITY
CLEAN CHART PLOTTING with color-coded candles

SEPARATE RSI DISPLAY for momentum monitoring

REAL-TIME SIGNALS directly on price chart

⚡ OPTIMIZATION TIPS
ADJUST RSI LEVEL based on asset volatility (55-70 range)

MODIFY SMOOTHING PERIODS for different timeframes

TEST POSITION SIZE according to risk tolerance

COMBINE WITH VOLUME CONFIRMATION for enhanced accuracy

📊 RECOMMENDED MARKETS
TRENDING FOREX PAIRS (EUR/USD, GBP/USD)

LIQUID INDICES (S&P 500, NASDAQ)

HIGH-CAP CRYPTO (BTC/USD, ETH/USD)

TIME FRAMES: 1-hour to daily charts

⚠️ RISK DISCLAIMER
This strategy is a TOOL FOR ANALYSIS, not financial advice. Always:

BACKTEST extensively before live trading

START WITH SMALL CAPITAL

USE PROPER RISK MANAGEMENT

CONSULT FINANCIAL PROFESSIONALS