EMA-Trend Filters for Rolling Support and Resistance Breakouts

Summary

This strategy combines a fast and slow exponential moving average with rolling support and resistance levels. By default, the 9-period EMA above the 20-period EMA permits long breakouts, while the reverse alignment permits shorts. Resistance is the highest high and support the lowest low across the prior 20 completed bars, excluding the current bar. A close crossing one of those levels in the permitted trend direction triggers an entry.

The script sets exits from the average entry price using percentage targets and stops: 12% and 6% by default, respectively, yielding a stated 1:2 reward-to-risk ratio. The accompanying description suggests charts from five minutes to one hour and says settings can be adjusted. It offers no backtest results to substantiate its performance claims, including the assertion about profitability at a particular win rate. The described percentages are wide for many intraday uses, and outcomes depend on asset, timeframe, execution costs and gap behavior.

Key ideas

• The strategy uses the fast and slow EMA relationship as a directional filter for breakout trades.
• Support and resistance use rolling lows and highs from completed prior bars.
• A close crossing above resistance or below support triggers a same-bar strategy entry when EMA alignment agrees.
• Exits use percentage-based targets and stops, set by default to 12% and 6% of entry price.
• The document gives suggested timeframes but provides no results validating its profitability claims.

Tags

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