21 EMA Pullback Strategy with Trend Confirmation and Fixed Exits
Summary
This strategy trades pullbacks around a 21-period exponential moving average, using a smoothed version of that average as a directional filter. Long setups require the smoothed line below the EMA, a prior-bar low reaching the EMA, a close above the EMA and prior high, and a price buffer above the EMA. Short setups reverse these conditions. Both directions are limited to a defined morning session, a specified date range, and a maximum number of daily entries.
The script sets fixed stop and profit distances in ticks and uses a fixed contract quantity with a cash commission assumption. It displays the close, high, and low EMAs alongside the smoothed line. The document offers no strategy report, sample results, or evidence of robustness, and the narrow date window limits what can be inferred from the design. The stated price buffer and tick-based exits may also behave differently across instruments and chart settings, so the rules require instrument-specific evaluation before use.
Key ideas
- The smoothed 21-period EMA relative to the EMA close defines the permitted long or short direction.
- Entries require a previous-bar touch of the EMA and a confirming candle that breaks the prior bar's extreme.
- A fixed price distance from the EMA filters for stronger trends.
- Trading is restricted by a session, date window, and daily trade cap.
- Stops and profit targets are fixed in ticks, but the document reports no performance evidence.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.