A Moving-Average Pullback System with Delayed Entries

Summary

This system combines the direction of an X-day average of closing prices with price comparisons over two lookback intervals. A buy setup requires the average to be higher than it was Y days earlier, while the latest close is below its level Y days earlier but above its level Y+X days earlier. The document also specifies a bearish candle for the buy condition and says to enter at the next day's open.

The sell setup reverses the average and price comparisons and requires a bullish candle, again with entry at the next day's open. An example uses X=20 and Y=3. The logic is intended to capture a pullback while the moving average is rising, and to hold until an opposite signal or a substantial adverse move. The source gives no test results, risk controls, or precise definition of how far against the position is too far, so profitability and practical exits remain unestablished.

Key ideas

• The system uses the slope of a closing-price average to identify its directional bias.
• A buy setup pairs a rising average with a short pullback and a longer-term price check.
• A sell setup applies the corresponding inverse price conditions.
• Entries are specified for the next session's open after a qualifying signal.
• The document provides no performance evidence or defined risk limit.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.