Intraday EMA Crossover Entries with Candle and ATR Filters
Summary
The strategy uses a short and a longer exponential moving average to frame intraday direction. A long signal requires the shorter average to be above the longer one, price to cross above the shorter average, and the latest candle to close higher than it opened. The short setup mirrors those conditions. An average true range value is used to plot a volatility-scaled stop level, with configurable lookback and multiplier.
The accompanying description presents the method as a simple way to trade short-term movement, while noting that moving averages lag and crossovers can whipsaw in choppy markets. Its published test settings specify BTC/USDT Binance futures over a period of about a year, with daily strategy bars and hourly base data. No return, drawdown, or other test results are supplied. Also, the prose describes crossover between the two averages, whereas the source code tests price crossing the shorter average while checking the averages' relative order; that distinction matters when interpreting or reproducing the signals.
Key ideas
- The strategy combines two exponential moving averages with candle direction as an entry filter.
- Long and short entries are triggered by price crossing the shorter average while the averages are ordered accordingly.
- Average true range sets a volatility-scaled stop level.
- Moving-average lag and whipsaws are cited as risks, and the published settings include no performance results.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.