EMA Trend Filter with Rolling Support and Resistance Breakouts

Summary

This strategy combines a short and a longer exponential moving average with rolling support and resistance levels. A long signal occurs when the close crosses above the highest high of the prior lookback window while the fast average is above the slow average. A short signal mirrors this rule, using a close below the prior-window low and a bearish average relationship. Referencing completed bars for the levels is intended to avoid using the current bar to set its own breakout threshold.

The script sets profit targets and stop losses as percentages of the average entry price, and plots pivot highs and lows for chart context. It supplies implementation rules but no performance results or market-specific validation. The excerpt does not include a complete prose description, and the fixed percentage exits and lookback settings may behave differently across instruments and timeframes; costs, slippage, and parameter sensitivity are not assessed.

Key ideas

• A long setup requires a close crossing above prior-window resistance with the fast EMA above the slow EMA.
• A short setup requires a close crossing below prior-window support with the fast EMA below the slow EMA.
• Support and resistance use completed bars, while pivot markers provide separate chart visualization.
• Exits use percentage-based target and stop levels relative to the average entry price.
• The document gives rules but no evidence of profitability or robustness across markets.

Tags

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