Engulfing Candle and Volume Signals with EMA and Session Filters

Summary

This MGC futures strategy combines candle structure, relative volume, trend, and trading-session filters to produce entries. A bullish setup requires an up candle whose range covers the prior candle’s range and whose close exceeds the prior open; the bearish conditions mirror that pattern. In either direction, current volume must exceed the previous bar’s volume by a configured multiple, and price must be on the matching side of an EMA. Entries are restricted to the selected Asia and New York windows, with London excluded, and the script requires confirmed bars and a cooldown after the position is flat.

The strategy enters two contracts, places separate partial exits at two profit distances with a shared stop, and includes breakeven management after price reaches a defined level. The source provides configurable tick distances and indicator lengths but no performance report or evidence of profitability. Its fixed settings and session logic are specific implementation choices; results may vary with contract, timeframe, costs, and execution assumptions.

Key ideas

• Entries require a directional candle that spans the prior bar’s range and closes beyond its open.
• The signal also requires a volume increase and agreement with the EMA-based trend filter.
• Trades are limited to configured Asia and New York hours, with a cooldown between trades.
• The position is split across two profit targets with a common stop and breakeven management.
• The document gives no strategy performance evidence, and execution assumptions may affect outcomes.

Tags

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