Intraday Pullback RSI Trading Strategy

This strategy aims to capture intraday long trades by identifying specific pullback conditions confirmed by higher timeframe trends. It leverages Exponential Moving Averages (EMAs), the Relative Strength Index (RSI), and Average True Range (ATR) to define entry and exit points.

Strategy Logic

The core idea is to enter a long position when the price pulls back towards a faster EMA (e.g., 20-period) while the RSI is not overbought or oversold (between 45 and 70 in this setup). Crucially, this pullback must occur within a generally bullish trend, as determined by a scoring system across multiple timeframes (15m, 30m, 1h, 4h, 1D). A combined score from the shorter timeframes (15m, 30m, 1h) needs to be positive, and optional filters can require the 4h and 1D timeframes to also be bullish.

A session filter can be applied to restrict trading to specific hours, ensuring trades are taken during active market periods. The entry signal is generated when all these conditions align: the price is near the fast EMA, the RSI is in the defined range, the higher timeframe trend is confirmed, and the trade occurs within the specified session.

Risk Management

Once a long position is entered, risk is managed using ATR. The stop-loss is set at a multiple (e.g., 1.5x ATR) below the entry price, and the take-profit target is set at a multiple (e.g., 3.0x ATR) above the entry price. This provides a defined risk-reward ratio for each trade.

The strategy also includes visual cues, plotting the fast and slow EMAs and highlighting the background color based on the higher timeframe trend filter. Optional signal shapes can be displayed on the chart for each valid entry signal.