Combining Trend Filters, Pullback Entries, and Volume Breakouts

Summary

This strategy combines a pullback engine with a structural breakout engine. Both require price above VWAP and a slower exponential moving average. The pullback setup looks for a touch near the faster EMA followed by a bullish candle; the breakout setup requires a close to cross above recent resistance with volume above its short moving average. When both setups qualify, the dip entry has priority. The script sets a stop at the recent five-bar low and a profit target at twice the entry-to-stop distance, and exits early if price falls below the slower EMA.

The script and its accompanying description provide rules and adjustable inputs, not performance evidence. Although the description mentions a third candlestick-breakout engine, the supplied code implements only the pullback and resistance-breakout engines. The stop calculation is shared across both entry types, and the stated risk/reward target does not guarantee realized results. Its suitability depends on the asset, timeframe, execution assumptions, and validation beyond the limited lookback window.

Key ideas

• Entries are filtered by price being above both VWAP and the slower EMA.
• The pullback engine looks for price near the faster EMA and a bullish reversal candle.
• The breakout engine requires a close above recent resistance and a volume increase.
• Dip entries take precedence when both entry conditions are satisfied.
• Stops use the recent five-bar low, with targets set at twice the initial risk distance.

Tags

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