Moving Average Filter with Six-Bar Range Breakouts

Summary

This document outlines a simple entry logic combining two moving averages with a recent price range break. A buy signal requires the first moving average to be above the second on the prior bar while the current bid reaches or falls below the lowest low across the preceding six bars. A sell signal reverses the moving-average comparison and checks for the bid to reach or exceed the highest high over that same lookback.

The material provides entry conditions only, without specifying the moving-average types or periods, exits, position sizing, or risk controls. It also offers no backtest results or evidence that the combined filter is profitable. The rules can be understood as pairing a trend comparison with a range-boundary trigger, but implementation details and testing would be needed before drawing conclusions about behavior.

Key ideas

• A buy setup requires the first moving average to exceed the second on the prior bar.
• The buy trigger also checks whether price reaches the recent six-bar low.
• A sell setup reverses the moving-average relationship and checks the recent six-bar high.
• The description gives entry rules but no exit, risk-management, or performance details.

Tags

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