Candlestick Wick Signals Filtered by a Long-Term EMA

Summary

This system measures each candle’s upper and lower wick as a share of its full high-low range. A bullish candle with a sufficiently large lower wick can trigger a long signal above a 200-period EMA; a bearish candle with a sufficiently large upper wick can trigger a short signal below it. The stated default wick threshold is 45%. The document also describes restricting trades to selected sessions, sizing positions as a fixed share of equity, and evaluating signals only after a candle closes.

The published settings specify BTC/USDT futures over a one-year interval, but include no reported performance statistics. The displayed source implements the wick and EMA conditions and disables pyramiding, but it does not show session filtering despite defining a session-use toggle. The strategy has no stop-loss or take-profit in the shown source. The document highlights false signals, EMA lag, and parameter sensitivity, and suggests adding risk exits, volume checks, and market-regime filters.

Key ideas

• Wick size is measured as a fraction of the candle’s high-low range.
• Large lower wicks on bullish candles can signal long entries above the EMA; large upper wicks on bearish candles can signal shorts below it.
• The stated defaults are a 45% wick threshold and a 200-period EMA.
• The displayed source waits for confirmed candles and permits only one position at a time, but shows no stop-loss or take-profit.
• The BTC/USDT futures settings cover one year, yet no performance statistics are provided.

Tags

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