EMA Trend, Fair Value Gaps, and Volume Imbalance Entry Rules

Summary

This strategy combines a fast and slow exponential moving average trend filter with a three-bar fair value gap, a strong directional candle, elevated volume, and a recent high or low break. Long setups require bullish alignment and short setups require bearish alignment. A minimum gap size is specified in ticks, and entries are restricted to a stated morning trading window in the UTC-6 timezone. The script uses the preceding candle for several signal checks and places stop entries just beyond the current close.

Exits use a fixed stop distance and trailing parameters, with configurable inputs for the stop, trigger, offset, and entry buffer. The source includes parameter defaults but no backtest results, market specification, or evidence that these rules are profitable. Some settings and point-to-tick conversions may need review for the traded instrument and platform behavior. The setup is therefore best understood as a rule set to inspect and evaluate, not as a validated strategy.

Key ideas

• The strategy filters direction using fast and slow exponential moving averages.
• Entries also require a fair value gap, directional candle with above-average volume, and a break of a recent extreme.
• A minimum gap threshold and a specified morning session window constrain eligible signals.
• Stop entries include a tick buffer and exits use a fixed stop with trailing parameters.
• The document gives no performance evidence, and instrument-specific units and order behavior require review.

Tags

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