EMA Trend Pullbacks Confirmed by WaveTrend Crossovers

Summary

This strategy looks for pullbacks within a longer-term trend. It calculates 50-period and 200-period exponential moving averages, then uses their relationship with price to define potential long and short setups. A WaveTrend-style oscillator provides the entry trigger: a bullish crossover for a long setup and a bearish crossunder for a short setup.

The document provides the entry rules and Pine Script implementation, including example settings for position sizing, commission, slippage, and order processing. It does not report backtest results or establish that the strategy has an edge. There are no specified exits, stop losses, or position management rules beyond the script’s entry calls, so those omissions limit what can be inferred about risk or performance. Results would depend on the market, timeframe, execution assumptions, and additional risk controls.

Key ideas

• The 200-period EMA acts as the broad directional filter for entries.
• Long setups require price above the 200-period EMA but below the 50-period EMA.
• Short setups require price below the 200-period EMA but above the 50-period EMA.
• WaveTrend crossovers and crossunders trigger entries within the specified pullback zones.
• The document gives no performance evidence or exit rules.

Tags

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