EMA50 Trend Filter and Candle Confirmations for Break-and-Retest Trades
Summary
This strategy description combines an EMA50 direction filter with candle patterns and a retest condition. Long setups require price above the average, a bullish engulfing or pin-bar pattern, and a retest from below; short setups mirror these conditions below the average. The described exits use a stop placed beyond the signal candle by a fixed number of minimum price increments, then set a target using a fixed risk-to-reward multiple.
The article also discusses daily and weekly market structure, order-block areas, and session filters, but the included source code implements the EMA, candle, retest, and stop/target rules rather than those broader elements. Published settings cover SOL/USDT futures over roughly a year, yet the document provides no performance statistics. The fixed stop distance, pattern definitions, and single-average filter may behave differently across instruments and volatility regimes; the claimed signal frequency and quality are not substantiated by reported results.
Key ideas
- Long and short direction is filtered by whether price is above or below EMA50.
- Engulfing candles and pin bars serve as directional confirmation patterns.
- A retest of EMA50 is required when the retest option is enabled.
- Stops are placed beyond the signal candle by a fixed tick offset, with targets scaled to risk.
- The published backtest settings do not include performance results, and some discussed filters are absent from the source code.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.