EMA Pullback Strategy with Williams %R Exits and Stops

Summary

This strategy combines a fast and slow EMA trend filter with pullback entries. It opens a long when price crosses below the fast EMA after remaining above it, provided the fast EMA is above the slow EMA; shorts use the inverse conditions. A configurable classic EMA can further restrict trades to the side of its current price level.

The script calculates a Williams-style oscillator from the recent high-low range and smooths it with an EMA. Positions close when the EMA trend reverses, the oscillator and its smoothing reach the stated overbought or oversold region, or price crosses a custom percentage stop. The document describes adjustable indicator lengths and visual entry signals, but provides no performance results or systematic test. It also notes that trades in periods when the two trend EMAs are close may be unfavorable, so the setup and its parameters require evaluation.

Key ideas

• The fast and slow EMAs define the permitted trade direction.
• Entries follow a price pullback across the fast EMA while the prior bar remains on the other side.
• A classic EMA can filter trades according to whether price is above or below it.
• Exit conditions combine EMA trend reversal, Williams-style oscillator thresholds, and a percentage stop.
• The document gives no backtest evidence and flags weak signals when the trend EMAs are close.

Tags

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