EMA Trend Filters with RSI and Candlestick Pattern Entries

Summary

This strategy combines a 200-period exponential moving average trend filter, RSI thresholds, and bullish or bearish candlestick patterns. Long entries require price above the average, RSI below its upper threshold, and either an engulfing candle or pin bar; short entries reverse those conditions. A stop is placed beyond the signal candle by a configured number of minimum ticks, and the profit target is set at a multiple of the entry-to-stop distance.

The document describes the approach as designed for a 15-minute chart, but the published backtest configuration uses three-day bars for ETH/USDT futures and gives no performance statistics. The source uses a simplified pin-bar test that can be sensitive to candle shape and can divide by zero when the high and low match. Fixed tick-based stops may also fit some instruments or volatility regimes poorly. The strategy's filters can reduce countertrend entries, but they do not establish profitability or prevent false signals in sideways markets.

Key ideas

• The 200-period EMA restricts trades to the prevailing price direction.
• RSI thresholds filter entries, while engulfing candles and pin bars provide triggers.
• Stops are placed beyond the signal candle, with targets set by a risk-reward multiple.
• The source's simplified pattern rules and fixed tick stop may not adapt well across markets.
• The described chart interval differs from the published backtest interval, which reports no results.

Tags

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