Combining ADX, Bollinger %B, AO, and EMA Filters
Summary
This strategy combines four technical filters to define long and short setups. It uses fast and slow EMA relationships to establish direction, Bollinger %B thresholds to require price near the upper or lower band, the Awesome Oscillator to confirm momentum, and ADX to require a minimum trend-strength reading. Entries are enabled from a configurable start date, and exits use percentage-based stop-loss and take-profit levels relative to the average position price.
The script also calculates and plots a separate volatility squeeze display using a regression basis, standard-deviation bands, and a range-based channel. The excerpt provides indicator formulas, default thresholds, and entry and exit rules, but no instrument, timeframe, backtest results, or cost assumptions. Its parameters therefore describe a testable hypothesis rather than evidence of an edge. The threshold choices and multiple filters may be sensitive to market and timeframe, while the excerpt does not explain how the squeeze display affects the actual entries.
Key ideas
- EMA ordering defines the directional bias for long and short trades.
- Bollinger %B, Awesome Oscillator, and ADX add price-location, momentum, and trend-strength filters.
- Entries are paired with percentage-based stop and target levels calculated from the average position price.
- A squeeze-style channel is plotted, but the excerpt does not show it conditioning the entry rules.
- No market-specific backtest results or transaction-cost assumptions are supplied.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.