Slingshot System By Dusty Investments

Slingshot System by Dusty Investments

What it is

• A trend-following pullback system designed to time entries inside an established trend using a two-EMA “cloud” plus a Stochastic-RSI K oscillator.
  
• It's the improved version of this script:
  

It plots:

• An EMA cloud (trend and pullback filter)
  
• Long/Short setup markers
  
• “TAKE PROFIT” markers based on the oscillator
  

Core building blocks

• Trend filter (EMA Cloud)
  
  • Fast EMA vs Slow EMA
    
  • Uptrend: Fast EMA > Slow EMA
    
  • Downtrend: Fast EMA < Slow EMA
    
  • The area between the two EMAs is filled (the “cloud”).
    

• Cloud touch
  
  • The system requires price to touch/pierce the cloud with a small tolerance (configurable) to qualify a pullback.
    

• Oscillator
  
  • K is a smoothed Stochastic of RSI (StochRSI K).
    
  • Oversold/Overbought levels default to 20/80, with a small tolerance kTol to avoid edge flicker.
    

Long logic (pullbacks within uptrend)

• Purpose: Catch a second, “higher” dip during an uptrend.
  
• Steps:
  
  • Candidate V1: While in uptrend, if K ≤ Oversold and price touches the EMA cloud, a V1 candidate is stored (the first dip).
    
  • Deal lock: When K later reaches ≥ Overbought in uptrend, the last V1 candidate is “locked in” as V1 for this cycle.
    
  • V2 search: After the lock, if another pullback appears (still in uptrend, K ≤ Oversold, price touching the cloud) and the low stays strictly above V1’s low, the script starts searching for the best V2 low (the lowest low of this second dip that remains above V1’s low).
    
  • Long signal: When K exits the oversold area, if a valid V2 was found above V1’s low, the indicator places a LONG label at that V2 low.
    
  • Take profit for Long: The “TAKE PROFIT” marker is shown when K crosses up through the Overbought level (≥ 80 by default).
    

Short logic (pullbacks within downtrend)

• Purpose: Catch lower‑high pullbacks during a downtrend. The workflow is explicit and labeled:
  
  • D1 (first anchor): In downtrend, when price touches the cloud and K ≥ Overbought, mark D1 (the first high).
    
  • Valley: The first time K reaches ≤ Oversold after D1.
    
  • D2 (setup high): After the valley, the first bar that again touches the cloud with K ≥ Overbought and makes a strict Lower High vs D1 becomes D2. This opens a “window.”
    
  • Signal (live): From D2 until confirmation, the Signal marker follows the most recent swing high that forms on downtrend bars. It never tracks uptrend bars.
    
  • Confirmation: The first time K reaches ≤ Oversold after D2, the Signal is fixed at the last tracked high. From here the system waits for TP.
    
  • Take profit for Short: The “TAKE PROFIT” marker is shown when K crosses back above the Overbought level (≥ 80 by default).
    
  • Chaining (New D1): At TP, the prior D2 is promoted to “New D1,” allowing the next cycle to form if conditions repeat (D1 → Valley → D2).
    

What the labels mean

• LONG: A validated long setup at the V2 low (second dip above the first dip’s low) within an uptrend.
  
• SHORT: The live Short entry marker that moves to the latest downtrend swing high between D2 and confirmation; it gets fixed when K hits ≤ Oversold.
  
• TAKE PROFIT: Suggestive exit markers tied to the K oscillator (Long TP when K crosses up 80; Short TP when K crosses up 80 after a Short confirmation).
  

Strict constraints baked in

• No signals against the trend
  
• Fast EMA / Slow EMA periods (trend and cloud)
  
• RSI period for the StochRSI, Stochastic period, and K smoothing
  
• Oversold/Overbought levels (defaults 20/80)
  
• Cloud touch tolerance (percent)
  
• kTol: tolerance around 20/80 thresholds for K
  

How to use it

• Pick your market and use the 4H timeframe since you get the best results this way.
  
• Trade with the trend:
  Uptrend: Watch for LONG markers (V1 then V2 higher‑low behavior).
  Downtrend: Watch the D1 → Valley → D2 sequence. The Signal marker appears after D2 and is fixed at confirmation; TP comes on K > 80.
  
• Calibrate touchTolPct and kTol per symbol/timeframe to match how tightly you want to require cloud touches and K thresholds.
  
• Risk management is up to you. The indicator outputs entries and TP suggestions; it does not set stops.
  

Notes

• Signals confirm at bar close. During a Short window, the live Signal may move to newer downtrend highs; once confirmed, it becomes fixed.
  
• The LONG side is symmetrical in spirit (pullback‑then‑higher‑low in uptrend), but naming uses V1/V2 instead of D1/D2.