Intraday Short Signals from Moving-Average Crosses and Slope Filters
Summary
This strategy generates short signals when a configurable fast moving average crosses below a slow moving average. Both averages may use EMA, SMA, or WMA calculations. A slope filter can require each average to be falling beyond a set threshold, and an optional session filter limits entries to a specified intraday window. The author describes using it on five-minute charts for selling index options, including Nifty and Bank Nifty.
A short position exits when the fast average crosses back above the slow one, or, when enabled, at the end of the session. The document provides the implementation and settings but no backtest results, performance evidence, or details on how the signal is translated into option contracts. The moving-average signal is generated from the underlying chart, so the script does not specify option selection, strike, expiry, premium risk, or position sizing. Its usefulness therefore depends on instrument, timeframe, execution, and separate risk controls.
Key ideas
- A short entry occurs when the fast moving average crosses below the slow moving average.
- An optional slope filter requires both averages to be declining past configurable thresholds.
- Entries can be restricted to a defined intraday session, with a forced close after that session ends.
- The author positions the setup for five-minute index-option trading, but the script itself does not define option contracts or sizing.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.