Multi-Indicator Trend and Momentum Strategy with ATR Exits

Summary

This stock strategy combines short and long exponential moving averages with MACD, RSI, directional movement, volume, and a higher-timeframe EMA. Long entries require bullish alignment across these indicators, a strong directional movement reading, above-average volume, and price above both a long-term average and the hourly EMA. Short entries use the inverse conditions. These stacked filters seek to select directional moves with momentum and volume confirmation.

Exits are set using average true range multiples, with a closer stop and a wider profit limit. The document presents the rules and describes intended use for strongly moving stocks, but includes no backtest results, sample period, or evidence that the filters improve performance. The exit levels are calculated from the current close on each bar, so their behavior may differ from fixed levels anchored at entry. Costs, timeframe choices, instrument selection, and order execution assumptions need evaluation before interpreting simulated results.

Key ideas

• Long and short signals require alignment among EMA ordering, MACD, RSI, DMI, and price relative to a long-term EMA.
• The strategy also requires above-average volume and agreement with an hourly EMA.
• ATR multiples define stop and profit-limit distances for each position.
• The document states intended markets but provides no measured performance evidence.
• Because exit prices reference the current close, their behavior can vary as new bars form.

Tags

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