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EMA, Relative Volume, and Stochastic RSI Growth Breakout Strategy

Article Strategy library · Author: anders_k
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Summary

This strategy looks for long breakouts after price has consolidated near a fast exponential moving average and remains close to its 52-week high. It requires a close above the recent breakout range, relative volume above a threshold, and optional EMA trend and Stochastic RSI confirmations. The defaults use 20- and 50-period EMAs, a 10-bar breakout comparison, relative volume of at least 1.5 times its average, and a 14-period RSI-based Stochastic filter. Position sizing can use a percentage of equity or a fixed quantity.

The script offers several exit choices, including EMA crossunders, percentage stops and targets, and ATR-based stops and targets. These settings make the strategy configurable, but the supplied excerpt cuts off during position sizing and does not show the exit implementation, full entry execution, or any test results. It specifies zero commission and slippage in its strategy declaration, so any results from that setup would need realistic trading costs before practical interpretation. No evidence of profitability is provided.

Key ideas

  • Entries require a price breakout with elevated relative volume after consolidation near the fast EMA and the 52-week high.
  • EMA trend and Stochastic RSI conditions can be enabled as entry filters.
  • The default EMA lengths are 20 and 50, and the relative volume threshold is 1.5.
  • Exit options include moving average, percentage-based, and ATR-based rules.
  • The supplied source is incomplete and contains no performance report.

Tags

EquitiesBreakoutMomentumTechnical indicatorsRisk management

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