EMA and Pivot-Level Breakouts with Risk-Based Targets
Summary
This strategy requires a single candle to cross both an exponential moving average and a selected pivot level. A bullish candle must open at or below both levels and close above them; the short setup reverses those conditions. Pivot levels can use Fibonacci or Traditional calculations based on the prior completed daily, weekly, or monthly period. The user can select the breakout level, with the default using first resistance for longs and first support for shorts. Entries are limited to one open position, and an optional session filter restricts when new trades may begin.
Risk controls place the stop beyond the signal candle’s extreme, optionally with a tick buffer, or at an ATR-based distance. The target is set as a configurable multiple of entry-to-stop risk, with a default reward-to-risk multiple of two. Orders are configured to execute on the signal candle’s close, and the described pivot calculation uses completed prior-period data. The document supplies strategy rules and implementation details but no backtest results, so it offers no evidence about profitability, slippage, or performance across markets and timeframes.
Key ideas
- A long signal candle must cross and close above both the EMA and the chosen pivot level; shorts use the inverse pattern.
- Pivot calculations can use Fibonacci or Traditional formulas based on a completed higher timeframe period.
- Signal candle extremes or an ATR multiple define stops, and targets scale with the initial risk distance.
- An optional session and timezone filter controls when new positions may open.
- No performance report is included, so the rules alone do not establish that the strategy is profitable.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.