EMA Pullback Entries with ADX Filtering and Pyramiding

Summary

This long-only trend strategy uses a rising 40-period EMA as its directional guide and requires ADX to exceed a configurable threshold for its base entry. It also offers pullback re-entries: price must approach the EMA within a selected ATR distance, then close above both the EMA and its open. Pyramiding allows qualifying signals to add to an existing position, while a minimum bar spacing limits how often entries can occur.

Optional EMA cross signals can trigger entries and exits in either close-cross or wick-based mode. The original exit occurs when the EMA slope turns down. The document describes adjustable inputs and TradingView backtesting settings, but supplies no performance results or market-specific validation. Outcomes depend on the symbol, timeframe, costs, settings, and market regime; the ADX filter does not prevent false signals, and added positions increase exposure and drawdown risk.

Key ideas

• The base long entry occurs when the EMA slope turns upward and ADX exceeds its threshold.
• Pullback entries require a nearby EMA retracement followed by a bullish recovery candle.
• Pyramiding and entry spacing govern how additional long positions are added.
• Optional EMA cross signals can serve as order triggers or visual references.
• Historical simulations depend on costs, market conditions, and parameter choices.

Tags

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