EMA Trend, RSI, ADX, and Volume Entry with an ATR Stop

Summary

This long only strategy combines trend, momentum, strength, and volume conditions for entries. It requires the 50 period EMA to be above the 200 period EMA and price to be above both averages. RSI, calculated over 25 periods, must be rising and between a minimum of 55 and a ceiling of 80; ADX must exceed 20, and volume must exceed its highest value from the preceding 10 bars. A qualifying signal opens a long position.

The exit is a close below a trailing stop set two ATRs below price, with the stop allowed to move upward but not downward while a position is open. The script uses a 14 period ATR and ADX. No backtest period, market, or performance results are supplied, so the strategy’s effectiveness cannot be assessed from this document. It also offers no short entry or separate stop for gaps and execution slippage; parameter sensitivity and the combined filters’ behavior across market regimes remain unexamined.

Key ideas

• Long entries require bullish alignment of the 50 and 200 period EMAs and price above both averages.
• The RSI must be rising within a specified band, ADX must indicate strength, and volume must exceed its prior 10 bar high.
• The trailing stop begins two ATRs below price and only ratchets upward while a long position is open.
• The script provides no test results, market sample, or evidence of robustness across regimes.
• The strategy defines long entries and exits but no short side.

Tags

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