ES EMA Pullback Strategy with ATR Stops and Session Filters

Summary

This ES futures strategy looks for continuation entries after price pulls back during a downtrend. It identifies bearish alignment with three exponential moving averages, then checks whether the bar reaches the fast average and closes lower. A short signal is allowed only during the stated morning and afternoon trading sessions. The script sets a stop and target using multiples of average true range; the accompanying explanation describes the target as about twice the stop distance.

The document also sketches the mirrored long setup and advises avoiding tangled averages, unclear direction, and small candles. It states an expected win-rate range and reward-to-risk relationship, but gives no backtest results, sample period, or evidence supporting those expectations. The published code implements only short entries, despite the prose describing bullish trades too. Since exit prices are calculated from each bar's close and the code does not show a systematic chop filter, actual behavior and robustness require independent review and testing.

Key ideas

• The short setup requires the fast, middle, and slow EMAs to be ordered downward.
• A bearish signal occurs when price reaches the fast EMA and the bar closes below its open.
• Entries are restricted to the specified morning and afternoon sessions.
• ATR multiples define the short stop and target distances.
• The prose describes long trades and chop avoidance, but the supplied script implements short entries only.

Tags

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