Higher-Timeframe EMA Bias with Pullback and Breakout Entries
Summary
This script combines a higher-timeframe directional filter with lower-timeframe trend and entry conditions. It classifies the higher-timeframe bias using price relative to a trend EMA and the ordering of fast, slow, and trend EMAs. On the chart timeframe, it checks EMA alignment, then allows entries after a pullback that recovers across an EMA or VWAP, or a close breakout beyond a prior high or low. Candle direction and RSI conditions further qualify signals, while a state variable limits repeated same-direction entries until price crosses the trend EMA.
The source also computes a rate-of-change z-score for chart shading and maps chart intervals to higher intervals. No backtest settings, performance results, stop-loss rules, or explanatory discussion are supplied, and the excerpt ends during plotting. The higher-timeframe request uses lookahead-on, which can expose future higher-timeframe values in historical bars and make signals appear better than they would be live. The script therefore describes a signal framework, not validated evidence of trading performance.
Key ideas
- Higher-timeframe EMA ordering and price location establish a directional bias for lower-timeframe trades.
- Lower-timeframe entries combine EMA or VWAP pullbacks, breakouts, candle conditions, and RSI filters.
- A state controller suppresses repeated signals in the same direction until price crosses the trend EMA.
- The script shades momentum conditions using a rate-of-change z-score.
- Lookahead-on in the higher-timeframe data request can introduce historical future information, and no performance evidence is given.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.