Gold Range Breakouts Filtered by the Daily EMA

Summary

This TradingView strategy combines a breakout from a recent price range with a daily trend filter. It compares the daily close with a 50-period daily EMA, then takes a long signal when price closes above the prior bar’s 20-bar high, the bar is bullish, and the daily filter indicates an uptrend. Short entries use the corresponding downside conditions. A bar-range test also requires the current high-to-low span to exceed one fifth of the recent range size.

Stops are placed at the recent range boundary, and profit targets are calculated using a configurable reward-to-risk multiple, set to 1.5 in the script. The page describes the tool as a modified strategy and mentions 23-hour trading, but it provides no backtest results or supporting performance evidence. The source does not specify a market or chart interval, and the range-based stop and target behavior may vary with the chart timeframe and market conditions. Trading costs and execution assumptions are not discussed.

Key ideas

• The strategy only considers breakouts that agree with the direction of the daily close relative to its 50-period EMA.
• A long signal requires a bullish close above the prior bar’s recent range high, while a short signal requires the inverse.
• The bar must also pass a strength filter based on its size relative to the recent range.
• Stops use recent range extremes, and profit targets scale the stop distance by a reward-to-risk input.
• The document provides rules but no backtest evidence to establish performance.

Tags

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