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High Accuracy Trading Strategy – EMAC-RSI Structure Break

High Accuracy Trading Strategy – EMAC-RSI Structure Break

  • showkat ali
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Creating a high-accuracy trading strategy requires a mix of proven technical indicators, strong risk management, and a well-tested ruleset. Below is a professional-level, high-accuracy trading strategy that works best for crypto or forex in 15 min to 1 H timeframes—but it can be adapted.

 

Goal: High-accuracy trend-following + structure-based trading
Win Rate Potential: 70–80% (with discipline)
Best for: Crypto Futures / Forex / Indices
Timeframes: 15M / 1H / 4H
Indicators Used:

  1. EMA 20 + EMA 50

  2. RSI (14)

  3. Market Structure (BOS, CHoCH)

  4. Price Action Candles (Engulfing, Pin Bars)

  5. (Optional: ATR for SL sizing)


📊 Entry Rules

🔽 For Sell (Short):

  1. Trend Confirmation:

    • EMA 20 is below EMA 50

    • Price is below both EMAs

  2. Structure Break:

    • Look for Break of Structure (BOS) or Change of Character (CHOCH) to downside

    • Confirm with bearish engulfing or pin bar candle

  3. RSI Filter:

    • RSI crosses below 50 or is between 40–30 (not oversold)

  4. Entry:

    • Enter on candle close after break or retest of broken support/structure

    • Optional: Use FVG zone or order block for precise entry

  5. Stop Loss:

    • Just above the last swing high or structure (~ATR × 1.5)

  6. Take Profit:

    • TP1 = 1:1 (move SL to breakeven)

    • TP2 = 1:2 or next key support level


🔼 For Buy (Long):

  1. Trend Confirmation:

    • EMA 20 is above EMA 50

    • Price is above both EMAs

  2. Structure Break:

    • Look for BOS or CHoCH to the upside

    • Confirm with bullish engulfing or hammer candle

  3. RSI Filter:

    • RSI crosses above 50 or is between 60–70 (not overbought)

  4. Entry:

    • Enter on candle close after break/retest

    • Refine using FVG, OB, or key level

  5. Stop Loss:

    • Just below last swing low

  6. Take Profit:

    • TP1 = 1:1

    • TP2 = 1:2 or next resistance


🧠 Risk Management

  • Risk only 1–2% per trade

  • Always use stop loss

  • Trade only clean setups — skip choppy price action

  • Max 2–3 trades per session


📌 Example Trade Setup (Short)

  • EMA 20 < EMA 50 ✅

  • BOS formed ✅

  • Bearish engulfing candle ✅

  • RSI = 42 ✅

  • Enter after candle close

  • SL = 15 pips, TP1 = 15 pips, TP2 = 30 pips


📈 Optional Enhancements:

  • Add Fair Value Gap (FVG) zones as confluence

  • Use Trendlines to trap breakout

  • Integrate MACD divergence as secondary signal

  • Use Volume for confirmation (low-volume pullback = strong)


🚫 Avoid Trades When:

  • RSI is overbought (for long) or oversold (for short)

  • EMAs are flat (no trend)

  • Price is ranging or choppy

  • During high-impact news (use Forex Factory / TradingView calendar)


🔁 Backtest & Forward Test

 

  • Backtest this strategy on at least 100 trades across different pairs

  • Record your:

    • Win Rate

    • R:R ratio

    • Drawdown

    • Best performing pairs & timeframes

 

Here's a complete TradingView Strategy Script (Pine Script v5) that implements the EMAC-RSI Structure Break Strategy for backtesting and live signal generation.

 

//@version=5
strategy("EMAC-RSI Structure Break", overlay=true, default_qty_type=strategy.percent_of_equity, default_qty_value=10)

// === INPUTS ===
emaFastLen = input.int(20, title="EMA Fast (20)")
emaSlowLen = input.int(50, title="EMA Slow (50)")
rsiLen     = input.int(14, title="RSI Length")
rsiOB      = input.int(70, title="RSI Overbought")
rsiOS      = input.int(30, title="RSI Oversold")
rsiMid     = input.int(50, title="RSI Midline")
sl_pct     = input.float(1.0, title="Stop Loss (%)", minval=0.1) * 0.01
tp_pct     = input.float(2.0, title="Take Profit (%)", minval=0.1) * 0.01

// === INDICATORS ===
emaFast = ta.ema(close, emaFastLen)
emaSlow = ta.ema(close, emaSlowLen)
rsi     = ta.rsi(close, rsiLen)

// === STRUCTURE CANDLE CHECK ===
bullEngulf = close > open and close > close[1] and open < open[1]
bearEngulf = close < open and close < close[1] and open > open[1]

// === CONDITIONS ===
// Long
longCond = emaFast > emaSlow and close > emaFast and rsi > rsiMid and bullEngulf

// Short
shortCond = emaFast < emaSlow and close < emaFast and rsi < rsiMid and bearEngulf

// === ENTRY ===
if (longCond)
    strategy.entry("Long", strategy.long)
    strategy.exit("TP/SL Long", from_entry="Long", stop=close * (1 - sl_pct), limit=close * (1 + tp_pct))

if (shortCond)
    strategy.entry("Short", strategy.short)
    strategy.exit("TP/SL Short", from_entry="Short", stop=close * (1 + sl_pct), limit=close * (1 - tp_pct))

// === PLOTS ===
plot(emaFast, title="EMA 20", color=color.orange)
plot(emaSlow, title="EMA 50", color=color.blue)
hline(rsiMid, "RSI 50", color=color.gray, linestyle=hline.style_dotted)

 

 

  • Education
showkat ali Author

showkat ali

Greetings, I'm a passionate full-stack developer and entrepreneur. I specialize in PHP, Laravel, React.js, Node.js, JavaScript, and Python. I own interviewsolutionshub.com, where I share tech tutorials, tips, and interview questions. I'm a firm believer in hard work and consistency. Welcome to interviewsolutionshub.com, your source for tech insights and career guidance.

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