Combining Follow Line, STC, MACD, and EMA for Trade Signals

Summary

This strategy combines a Bollinger Band based Follow Line with an EMA trend filter, Schaff Trend Cycle (STC), and MACD confirmations. It can generate long and short signals under loose, balanced, or strict entry modes, with configurable confirmation logic for each indicator. The Follow Line changes according to price relative to its bands and can use an ATR adjustment; the EMA offers price, crossover, slope, or combined confirmation modes. STC and MACD settings control how momentum turns, thresholds, crosses, and histogram direction qualify a signal.

The script also offers several exit styles, including ATR-based stops and targets, fixed risk-reward levels, trailing exits, and exits on a Follow Line reversal. Inputs allow users to adjust risk per trade, indicator parameters, and display settings. The document provides implementation details but no performance statistics, tested market conditions, or evidence that the combined confirmations improve results. Its many selectable modes and parameters require validation, and the excerpt omits some strategy logic, limiting a full assessment of entries and sizing.

Key ideas

• The strategy combines a band-based Follow Line with EMA, STC, and MACD confirmation signals.
• Users can choose different entry strictness and confirmation rules for each indicator.
• ATR can adjust the Follow Line and can also set stop and target distances.
• Exit options include fixed risk-reward, trailing, ATR-based, and Follow Line reversal methods.
• The document provides no backtest results showing whether the indicator combination is effective.

Tags

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