Multi-Timeframe EMA Rejection Strategy with Partial Profit Taking

Summary

This intraday strategy is designed for gold on a five-minute chart. It requires the faster of two exponential moving averages to be above the slower average on both the five-minute and fifteen-minute charts for long setups, and below on both for short setups. Entry also requires a candle closing in the trade direction with a prominent opposing wick, intended to mark rejection of lower or higher prices.

Trade management splits the position: half is assigned a nearer fixed target, while the remainder has a farther target and a trailing stop. The protective stop is placed relative to an EMA with a price buffer. The accompanying description suggests London and New York sessions and trending, volatile conditions, and cautions that results depend on volatility, timing, spreads, and execution. No backtest statistics or evidence of profitability are supplied, so the stated targets and design goals should not be treated as validated outcomes.

Key ideas

• Long and short signals require EMA alignment on both the five-minute and fifteen-minute timeframes.
• A directional candle with a relatively long opposing wick acts as the entry confirmation.
• The position is divided between a closer partial target and a farther target with a trailing stop.
• The stop is tied to an EMA and adjusted by a configurable buffer.
• The document provides no performance results, and execution conditions may affect outcomes.

Tags

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