EMA Pullback Trend Continuation with Volume and RSI Filters

Summary

This strategy identifies trend direction with 50-period and 200-period exponential moving averages. It looks for a pullback to the fast average followed by a close back on the trend side, then requires volume above its 20-period average and an RSI threshold: above 40 for longs and below 60 for shorts. Entries are restricted to confirmed bars and occur only when there is no open position. The script places stop and target orders using recent five-bar swing extremes and ATR-based buffers or targets.

The source specifies a 2.5 ATR target distance and a 0.5 ATR stop buffer, and sets position sizing to 10% of equity with a stated commission of 0.05%. It includes chart labels for closed-trade profit and plots both EMAs, but provides no market, timeframe, backtest results, or evidence of profitability. Consequently, the rules are described in detail, while their performance and suitability across instruments remain unestablished.

Key ideas

• The 50-period and 200-period EMAs define bullish and bearish regimes.
• A pullback and close back across the fast EMA provide the entry confirmation.
• Volume and RSI conditions filter long and short entries.
• ATR-based targets and stops use recent swing highs or lows as anchors.
• The document gives no backtest results or asset and timeframe context.

Tags

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