EMA Trend and Prior-Bar Breakout Entries with Fixed Targets and Stops

Summary

This script describes a two-sided strategy that combines an EMA trend filter with a one-bar price breakout. It takes a long signal when the fast EMA is above the slow EMA and the close exceeds the previous bar’s high; the short setup reverses those conditions, requiring the close below the previous bar’s low. A cooldown period prevents another entry signal for several bars after a trade is opened.

Exits use fixed price distances from the average entry price for both profit targets and stop levels. The script also plots the moving averages, entry markers, and flat-position transitions. It supplies parameters and implementation details, but no backtest results, market selection, or evidence that the settings perform well. The brief accompanying notes mention pivot signals and waiting until the next bar, but do not explain how those ideas modify the coded rules. Users would need to assess costs, instrument and timeframe fit, and execution behavior independently.

Key ideas

• The long and short entries require EMA alignment and a close beyond the prior bar’s high or low.
• A cooldown of three bars is used to space eligible entries.
• Profit targets and stop levels are set at fixed price distances from the average entry price.
• The script includes chart markers but provides no reported performance evidence or specified market context.

Tags

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