Moving Average Trend Filters and Breakout Entry Rules

Summary

This description outlines a long-side breakout setup that combines moving average alignment with price and candle conditions. The trend filter requires the 20-period EMA to exceed the 30-period EMA, and the 30-period EMA to exceed the 50-period EMA. The breakout bar must open above the 30-period EMA, while its low must touch or fall below the 20-period EMA.

Additional settings define the prior range to break, its minimum size, the breakout’s required strength relative to that range, the breakout candle’s wick proportion, and minimum and maximum candle size. It also mentions volume, stop loss, and target inputs. Short trades are described as the inverse. This is a parameter outline rather than a complete or validated strategy: it does not specify execution timing, asset or timeframe, position sizing rules, or performance results. Several input labels are ambiguous, so implementation details would need to be resolved before testing.

Key ideas

• The long setup uses a rising order of 20-, 30-, and 50-period EMAs as a trend filter.
• The breakout bar must open above the 30-period EMA and reach the 20-period EMA with its low.
• Breakout qualification depends on the prior range, breakout strength, wick proportion, and candle size.
• The description mentions stop loss and target inputs but supplies no performance evidence or full execution rules.

Tags

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