Big Extender
📘 Summary
Indicators | - EMA (200)
- RSI (14)
- EMA applied to RSI (14)
- ADX (14) |
Suggested Chart Timeframes | 15M, 1H, 4H, 1D |
Long Entry | - Price is above EMA200
- RSI crosses above 70
- RSI is above EMA RSI
- ADX is above 30 |
Short Entry | - Price is below EMA200
- RSI crosses below 30
- RSI is below EMA RSI
- ADX is above 30 |
Suggested Exit Signal | - Fixed Stop-Loss/Take-Profit levels (e.g., 1% and 3%). |
📚 Details
The Big Extender strategy is a mixture of trend and momentum indicators. Moreover, it uses a rather uncommon EMA RSI to further enhance the quality of signals. However, due to the number of indicators, the strategy is probably not suited for beginners.
Required Indicators
To kickstart this strategy, you will need two key indicators (well, actually four — however, we use the Exponential Moving Average in three different ways):
- Exponential Moving Average 200 (moving average of the last 200 data points)
- Average Directional Index (ADX 14): A crucial indicator for gauging trend strength, with the sweet spot above 30.
- Relative Strength Index (RSI): A momentum oscillator that measures the speed and change of price movements, identifying overbought (>70) or oversold (<30) conditions.
- RSI Applied To EMA: A variation of the RSI that uses the EMA instead of the actual closing price for calculation.
Chart Timeframes
This strategy is versatile across several chart timeframes, including 15M, 1H, 4H, and daily charts. However, backtests have shown that hourly and daily charts yield the best results.
Entry Signals
Let’s have a look at the entry signals. The strategy provides a clearly defined entry signal for both long and short trades. However, it is important to make sure that all criteria are met before opening a trade!
Long Entry Signal
Short Entry Signal
Obviously, the short entry is the opposite in terms of indicators.
Exit Signal
- Set fixed Stop-Loss/Take-Profit levels (e.g., 1% and 3%). You can backtest the best levels before executing your trade (Crypto OS offers a straightforward feature to backtest your strategies).
Backtest Results
Depending on market conditions and chosen tokens, success rates of 65% and even 70% have been observed.
How To Apply The Strategy?
All indicators required for this strategy are available on TradingView, making it accessible for traders at all levels.
For those looking for a more direct approach, Crypto OS offers this strategy as a pre-defined signal for more than 200 crypto tokens, simplifying the process even further.