Multi-Timeframe Moving Average Alignment for Trend Following

Summary

This document presents a trend-following method using four exponential moving averages with periods of 9, 21, 50, and 200 days. A long entry requires the close and each shorter average to be above the next longer average, creating a fully ordered bullish alignment. The written description also gives a mirrored bearish condition for shorts. Positions are exited when the close crosses the 21-day average in the direction that signals a reversal.

The approach uses alignment across short, medium, and long horizons to seek established trends, while acknowledging that moving-average rules can produce false signals in sideways markets and react poorly to sharp moves. The document suggests parameter testing and optional volume, volatility, or indicator filters. Its published settings describe a daily BTC futures backtest window, but no outcome statistics are supplied. The source enters long positions under the bullish alignment, while the short-entry block is commented out, so the written short rule is not active in the included implementation.

Key ideas

• Long entries require price and four moving averages to form a bullish sequence.
• The written strategy describes a mirrored bearish sequence for short entries.
• The 21-day average acts as the stated exit reference for both directions.
• Range-bound markets can create false signals, and the supplied source does not activate short entries.

Tags

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