EMA Close Crossovers with an 8-, 13-, 21-, and 55-Period Trend Filter

Summary

This trend-following strategy compares three fast EMAs, with periods of 8, 13, and 21, against a 55-period EMA. It signals long when all three fast averages are above the 55-period average and the close is also above it; the short condition reverses those relationships. A 200-period EMA is plotted as an additional chart reference, but the described entry rules do not use it. The source allows EMA periods and input prices to be changed, and the accompanying discussion suggests daily or hourly charts.

No performance results are reported. The notes identify whipsaws in ranging markets, false breaks, trading costs from frequent signals, and the possibility that backtests overstate live performance. The source enters or reverses positions when conditions are met, but does not define a per-trade stop loss. Suggested extensions include additional filters, stop-loss rules, and position sizing; these are proposals rather than tested improvements.

Key ideas

• Long and short signals require all three fast EMAs and the close to be on the same side of the 55-period EMA.
• The 200-period EMA is displayed but is not part of the stated entry conditions.
• The approach is intended to follow trends and may produce repeated false signals in sideways markets.
• The source does not specify a per-trade stop loss or provide performance evidence.

Tags

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