EMA 1 & SALMA Intersection Strategy

Trading Strategy: EMA 1 & SALMA Crossover System
This strategy is a Trend-Following system that focuses on the direct interaction between the price (represented by EMA 1) and a smoothed trendline (SALMA). Instead of relying on the color changes of the indicator, it uses mechanical crossover signals to enter and exit trades.

1. Indicators Used
EMA 1 (Exponential Moving Average): Since the period is 1, it effectively represents the Current Price. It reacts instantly to every market move.

SALMA v3.0 (Smoothed Adaptive Lattice Moving Average): A double-smoothed moving average that acts as the "Base Line" or "Trend Support/Resistance."

RSI (Relative Strength Index): Used as a Momentum Filter to ensure we don't trade against the market's strength.

2. Buy (Long) Entry Rules
You enter a Long position when the following conditions are met:

The Crossover: The EMA 1 (Price) crosses ABOVE the SALMA line. This indicates that the short-term momentum is shifting higher than the average trend.

The Filter (RSI): The RSI must be above 50. This confirms that the buyers are in control and the upward move has enough strength.

3. Sell (Short) Entry Rules
You enter a Short position when the following conditions are met:

The Crossunder: The EMA 1 (Price) crosses BELOW the SALMA line. This indicates a breakdown in price action.

The Filter (RSI): The RSI must be below 50. This confirms that the sellers are dominating and the downward momentum is real.

4. Key Advantages of This System
Objectivity: You don't guess based on the color of the line; you wait for a clear physical break (cross) of the line.

Precision: By using EMA 1, you get the earliest possible entry signal compared to slower moving averages.

False Signal Protection: The RSI 50 filter prevents you from entering "weak" trades where the price crosses the line but lacks the volume or momentum to continue.