Monthly RSI 70 Breakout — Strategy by Vishwajeeth_JK
By Vishwajeeth_JK
Performance Metrics
- Author: Vishwajeeth_JK
- Symbol: NSE:BSE
- Timeframe: 1 month
Description
Monthly RSI 70 Breakout StrategyA long-only, trend-following strategy for the MONTHLY timeframe. It looks for strong momentum, when monthly RSI(14) moves above 70, and rides the trend until momentum fades.CREDITThis strategy is based on the monthly RSI 70 breakout concept taught by Dhiren Desai on YouTube. Full credit to him for the original idea; this script is my implementation of it in Pine Script.ENTRYA signal forms when monthly RSI(14) crosses above 70. Optional filters:• Bullish candle: the signal month must close above its open.• All-time high: the signal month must close above the prior all-time high.Two entry methods:• Monthly close (default): enter at the close of the signal month.• Breakout filter: place a buy-stop just above the signal candle's high. The order is valid only during the next month. If the signal candle's low is broken before the high, the setup is invalid. Daily data inside the month is used to check which level broke first.EXIT• Initial trailing stop: for the first 2 months after entry (adjustable), the stop trails the previous monthly candle's low and only moves up.• RSI exit: after the initial period, the trade closes on any monthly close with RSI(14) below 69.3 (adjustable).• Optional partial profits at price multiples (e.g. 2x, 3x of entry) or at extreme RSI (e.g. 85).DISPLAY• Each closed trade shows the % captured and the holding time.• The open trade shows its running % and time in trade.• A stats table shows trade count, win rate, average winner/loser, best/worst trade, average holding time and compounded return.• Signal markers, the breakout level and the stop level are plotted on the price chart.NOTES• Use only on the 1M chart.• Orders are processed on the monthly close.• Bar magnifier is enabled for more realistic fills inside the month (requires a Premium plan or higher). Without it, fills use TradingView's standard OHLC assumptions.• If an invalid breakout still fills, it is closed at that month's close, marked "INVALID" and excluded from the stats table, but it still appears in the Strategy Tester's trade list.• Monthly strategies produce few trades, so test on many symbols before drawing conclusions.This script is for educational purposes only and is not financial advice. Past performance does not guarantee future results.