Momentum and Volume Filters with EMA and ATR Trade Exits
Summary
This strategy combines 20-period price momentum with the direction of a 50-period simple moving average. It enters only when volume exceeds its 20-period average by a specified margin, and can also require price to be on the matching side of a 200-period EMA. The filter can be disabled. New positions are allowed only while flat.
Stops are placed beyond the signal bar’s low for longs or high for shorts, offset by ATR multiples that differ by direction. Profit targets are set at twice the corresponding stop multiple in ATR terms from the average entry price. The script also emits webhook-style entry and exit alerts. The document provides implementation details but no market, backtest results, or evidence that the settings work across instruments or regimes. ATR-based distances and volume confirmation do not by themselves establish profitability, and the described exits should be assessed with realistic execution assumptions.
Key ideas
- Long and short entries combine 20-period momentum with the direction of a 50-period moving average.
- A volume filter requires current volume to exceed its 20-period average by a set margin.
- An optional 200-period EMA filter aligns entries with the broader price trend.
- ATR multiples set direction-specific stops and profit targets.
- The source describes alerts and rules but supplies no performance evidence or tested market context.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.