/**
* Indicator-Based Exit Condition Checker
* Check exit conditions based on technical indicators
*/
export function checkIndicatorBasedExit(position, marketData, config) {
if (!config.enabled) {
return null;
}
if (!marketData || !marketData.indicators) {
return null;
}
const indicators = marketData.indicators;
const exitConditions = [];
// RSI reversal check
if (indicators.rsi14 != null) {
const rsi = indicators.rsi14;
if (position.side === 'LONG' && rsi >= config.rsiThreshold) {
exitConditions.push({
indicator: 'RSI',
reason: `RSI (${rsi.toFixed(2)}) >= ${config.rsiThreshold} (overbought)`
});
}
else if (position.side === 'SHORT' && rsi <= (100 - config.rsiThreshold)) {
exitConditions.push({
indicator: 'RSI',
reason: `RSI (${rsi.toFixed(2)}) <= ${100 - config.rsiThreshold} (oversold)`
});
}
}
// MACD crossover check (REQUIRES CONFIRMATION - don't exit only on MACD)
// MACD is lagging indicator, prone to false signals in choppy/sideways market
if (config.macdCrossover && indicators.macd != null) {
const macd = indicators.macd;
const macdLine = macd.MACD || macd.macd || 0;
const signalLine = macd.signal || 0;
const histogram = macd.histogram || (macdLine - signalLine);
// Check for MACD crossover
const macdBearishCross = position.side === 'LONG' && macdLine < signalLine;
const macdBullishCross = position.side === 'SHORT' && macdLine > signalLine;
if (macdBearishCross || macdBullishCross) {
// CRITICAL FIX: MACD requires confirmation from other indicators
// Don't exit ONLY on MACD cross - need at least ONE of:
// 1. RSI overbought/oversold (strong momentum reversal)
// 2. Price breaks EMA20/EMA50 (trend reversal)
// 3. Volume drops significantly (loss of momentum)
let macdConfirmation = false;
const confirmations = [];
// Confirmation 1: RSI overbought/oversold
if (indicators.rsi14 != null) {
const rsi = indicators.rsi14;
if (position.side === 'LONG' && rsi >= 70) {
macdConfirmation = true;
confirmations.push(`RSI ${rsi.toFixed(1)} (overbought)`);
}
else if (position.side === 'SHORT' && rsi <= 30) {
macdConfirmation = true;
confirmations.push(`RSI ${rsi.toFixed(1)} (oversold)`);
}
}
// Confirmation 2: Price breaks EMA
if (marketData.price) {
const price = marketData.price;
if (position.side === 'LONG' && indicators.ema20 != null && price < indicators.ema20) {
macdConfirmation = true;
confirmations.push(`Price broke EMA20`);
}
else if (position.side === 'SHORT' && indicators.ema20 != null && price > indicators.ema20) {
macdConfirmation = true;
confirmations.push(`Price broke EMA20`);
}
}
// Confirmation 3: Histogram shows strong momentum (for additional confirmation)
if (Math.abs(histogram) > Math.abs(macdLine) * 0.3) {
// Strong histogram divergence from MACD line
confirmations.push(`Strong histogram divergence`);
}
// Only exit if MACD cross + at least ONE confirmation
if (macdConfirmation || confirmations.length >= 1) {
const confirmText = confirmations.length > 0 ? ` + ${confirmations.join(', ')}` : '';
exitConditions.push({
indicator: 'MACD',
reason: `MACD (${macdLine.toFixed(4)}) crossed ${position.side === 'LONG' ? 'below' : 'above'} signal (${signalLine.toFixed(4)})${confirmText} - reversal confirmed`
});
}
else {
console.log(`\x1b[36m⚠️ MACD ${position.side === 'LONG' ? 'bearish' : 'bullish'} cross detected for ${position.symbol}, but no confirmation - ignoring (lagging indicator)\x1b[0m`);
}
}
}
// EMA break check (use multiple EMAs for confirmation)
if (config.emaBreak && marketData.price) {
const price = marketData.price;
const ema20 = indicators.ema20;
const ema50 = indicators.ema50;
// Check EMA20 break (more sensitive, immediate exit)
if (position.side === 'LONG' && ema20 != null && price < ema20) {
exitConditions.push({
indicator: 'EMA20',
reason: `Price (${price.toFixed(4)}) broke below EMA20 (${ema20.toFixed(4)}) - trend reversal`
});
}
else if (position.side === 'SHORT' && ema20 != null && price > ema20) {
exitConditions.push({
indicator: 'EMA20',
reason: `Price (${price.toFixed(4)}) broke above EMA20 (${ema20.toFixed(4)}) - trend reversal`
});
}
// Check EMA50 break (stronger confirmation, major trend reversal)
if (position.side === 'LONG' && ema50 != null && price < ema50) {
exitConditions.push({
indicator: 'EMA50',
reason: `Price (${price.toFixed(4)}) broke below EMA50 (${ema50.toFixed(4)}) - major trend reversal`
});
}
else if (position.side === 'SHORT' && ema50 != null && price > ema50) {
exitConditions.push({
indicator: 'EMA50',
reason: `Price (${price.toFixed(4)}) broke above EMA50 (${ema50.toFixed(4)}) - major trend reversal`
});
}
}
// Support/Resistance break check
if (config.supportResistanceBreak && marketData.externalData?.marketStructure) {
const structure = marketData.externalData.marketStructure;
// const price = marketData.price
// Check support break for LONG
if (position.side === 'LONG' && structure.coc?.coc === 'bearish') {
exitConditions.push({
indicator: 'SUPPORT_RESISTANCE',
reason: 'Support level broken (bearish structure change)'
});
}
// Check resistance break for SHORT
else if (position.side === 'SHORT' && structure.coc?.coc === 'bullish') {
exitConditions.push({
indicator: 'SUPPORT_RESISTANCE',
reason: 'Resistance level broken (bullish structure change)'
});
}
}
// ATR expansion check (extreme volatility)
if (config.atrExpansion && indicators.atr != null && marketData.price) {
const atr = indicators.atr;
const price = marketData.price;
const atrPct = (atr / price) * 100;
// Calculate average ATR from historical data
if (marketData.historicalData && marketData.historicalData.length >= 14) {
let avgATR = 0;
const historicalLen = marketData.historicalData.length;
for (let i = 1; i < Math.min(14, historicalLen); i++) {
const high = marketData.historicalData[historicalLen - i].high;
const low = marketData.historicalData[historicalLen - i].low;
avgATR += (high - low) / price;
}
avgATR = (avgATR / Math.min(14, historicalLen - 1)) * 100;
const atrExpansion = atrPct / avgATR;
if (atrExpansion >= config.atrExpansionThreshold) {
exitConditions.push({
indicator: 'ATR',
reason: `Extreme ATR expansion (${atrExpansion.toFixed(2)}x average)`
});
}
}
}
// Decision logic
if (exitConditions.length === 0) {
return null;
}
// With requireConfirmation=false, exit on single indicator (default)
// With requireConfirmation=true, need 2+ indicators
const shouldExit = config.requireConfirmation
? exitConditions.length >= 2 // Exit only if multiple indicators agree
: exitConditions.length >= 1; // Default: exit on any indicator
if (!shouldExit) {
return null;
}
const indicatorsList = exitConditions.map(ec => ec.indicator).join(', ');
const reasonsList = exitConditions.map(ec => ec.reason).join('; ');
// Log indicator-based exit detection
console.log(`\x1b[33m📊 INDICATOR EXIT DETECTED for ${position.symbol}: ${indicatorsList} - ${reasonsList}\x1b[0m`);
return {
reason: 'INDICATOR_BASED',
priority: 3, // Higher priority: after stop loss (2) and take profit (3), but before trailing stop (4)
shouldExit: true,
exitSize: 100, // Full exit
exitPrice: marketData.price || position.currentPrice, // Use current market price
metadata: {
indicators: indicatorsList,
exitConditions: exitConditions.map(ec => ec.indicator),
strict: config.strict,
requireConfirmation: config.requireConfirmation
},
timestamp: Date.now(),
description: `Indicator-based exit: ${reasonsList}`
};
}
