Higher-Timeframe Candle Bias with EMA and Volume Filters

Summary

This strategy derives a directional bias from whether a selected higher-timeframe candle closes above or below its open. It can generate long signals in a bullish candle state and short signals in a bearish state, subject to optional EMA and volume filters. The EMA filter requires price to be on the corresponding side of its average, while the volume filter compares current volume with a moving average. A daily control limits signals to one per day, and a dashboard reports the bias and filter settings.

The script includes a lookahead option that can expose future higher-timeframe values in historical calculations and cause repainting, so backtest signals may not reflect information available in live trading. The excerpt gives no performance results or evaluation of the filters. Candle direction alone is a coarse bias measure, and a one-trade-per-day limit constrains activity; conclusions depend on lookahead settings, timeframe alignment, execution assumptions, and broader testing.

Key ideas

• The strategy uses the open and close of a selected higher-timeframe candle to define bullish or bearish bias.
• Optional EMA and volume conditions filter entries, and a daily flag limits signal generation.
• The lookahead setting can cause repainting and can make historical behavior differ from live conditions.
• The excerpt provides no performance results, so the value of its filters is not demonstrated.
• A dashboard displays the current bias and whether lookahead and filters are enabled.

Tags

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