2026 CHRISTMAS PRESENT

CHRISTMAS PRESENT

Overview

The Cash Detector is a comprehensive trading strategy that combines momentum analysis with price action confirmation to identify high-probability entry points. This strategy is designed to capture trend reversals and continuation moves by requiring multiple confirming signals before entry, significantly reducing false signals common in single-indicator systems.


Strategy Background

The strategy is built on the principle of confluence trading requiring multiple technical factors to align before taking a position. It focuses on two critical phases of market rotation:

Q2 Momentum Phase: Uses MACD crossovers to identify shifts in market momentum, signaling when bulls or bears are gaining control.

Q4 Trigger Phase: Employs engulfing candlestick patterns to confirm strong directional pressure and validate the momentum signal with actual price action.

By combining these elements, the strategy filters out weak signals and focuses only on setups where both momentum AND price action agree on direction.


Key Features


[1]Dual Confirmation System: Requires both MACD momentum shift and engulfing candle pattern

[2]RSI Filter: Optional overbought/oversold filter to avoid extreme conditions

[3]Built-in Risk Management: Configurable stop loss and take profit levels

[4]Performance Dashboard: Real-time ROI metrics displayed on chart

[5]Full Backtesting: Strategy mode allows historical performance analysis



Trading Rules


LONG ENTRY BUY

All conditions must occur on the same candle:

1. Momentum Confirmation:
MACD line crosses above signal line bullish crossover

2. Price Action Confirmation:
Bullish engulfing pattern forms:
Current close greater than previous open
Current open less than previous close
Current close greater than current open

3. RSI Filter Optional:
RSI less than 70 not overbought

Visual Signal: Green LONG label appears below the candle


SHORT ENTRY SELL

All conditions must occur on the same candle:

1. Momentum Confirmation:
MACD line crosses below signal line bearish crossover

2. Price Action Confirmation:
Bearish engulfing pattern forms:
Current close less than previous open
Current open greater than previous close
Current close less than current open

3. RSI Filter Optional:
RSI greater than 30 not oversold

Visual Signal: Red SHORT label appears above the candle


Exit Rules


Stop Loss Default 2 percent

Long: Exit if price drops 2 percent below entry

Short: Exit if price rises 2 percent above entry


Take Profit Default 4 percent

Long: Exit if price rises 4 percent above entry

Short: Exit if price drops 4 percent below entry


Input Parameters


Indicator Settings

MACD Fast Length: 12 default

MACD Slow Length: 26 default

RSI Length: 14 default


Risk Management

Use Stop Loss: Enable or disable stop loss

Stop Loss percent: Percentage risk per trade default 2 percent

Use Take Profit: Enable or disable take profit

Take Profit percent: Target profit per trade default 4 percent


Filters

Use RSI Filter: Enable or disable RSI overbought oversold filter

RSI Overbought: Upper threshold default 70

RSI Oversold: Lower threshold default 30


Performance Metrics

The built-in dashboard displays:

Net Profit: Total profit loss in currency and percentage

Total Trades: Number of completed trades

Win Rate: Percentage of profitable trades

Profit Factor: Ratio of gross profit to gross loss

Average Win Loss: Mean profit per winning losing trade

Max Drawdown: Largest peak to trough decline


Best Practices

1. Timeframe Selection: Works on multiple timeframes test on 15min 1H 4H and daily

2. Market Conditions: Most effective in trending markets with clear momentum

3. Risk Reward Ratio: Default 1:2 ratio 2 percent risk 4 percent reward is conservative adjust based on backtesting

4. Combine with Context: Consider overall market trend and support resistance levels

5. Backtest First: Always backtest on your specific instrument and timeframe before live trading


Risk Disclaimer

This strategy is for educational purposes. Past performance does not guarantee future results. Always:

Backtest thoroughly on historical data

Paper trade before using real capital

Use proper position sizing and risk management

Never risk more than you can afford to lose


Customization Tips

Aggressive traders: Reduce stop loss to 1.5 percent increase take profit to 5 percent

Conservative traders: Increase stop loss to 3 percent reduce take profit to 3 percent

Ranging markets: Enable RSI filter to avoid false breakouts

Strong trends: Disable RSI filter to catch all momentum shifts


Technical Details

Indicators Used:

Moving Average Convergence Divergence MACD

Relative Strength Index RSI

Candlestick Pattern Recognition

Strategy Type: Trend following with momentum confirmation

Best Suited For: Stocks Forex Crypto Indices


Version 1.0

Compatible with Pine Script v5