Open-Series Crossovers for Trend Signals and Reversals

Summary

This strategy generates directional signals from crossovers in a moving-average series of opening prices and its one-bar lag. A rising open-based series crossing above its prior value triggers a long entry; crossing below triggers a short entry. The script can use raw opens or select among several moving-average types, and it supports an alternate calculation timeframe. The author’s notes suggest using a strategy resolution several times higher than the chart resolution, while cautioning that the fit and stop settings require experimentation.

The code includes chart coloring to show the direction of the relationship and sets position size as a share of equity. Although inputs are provided for trailing stops, the corresponding exit orders are commented out, so they do not manage trades as written. The accompanying note says the close series was changed because it repainted, but the displayed implementation instead compares the open-based series with its prior value. No results or systematic validation are supplied; crossover lag, timeframe behavior, and parameter selection limit what can be inferred from the example.

Key ideas

• The strategy enters long or short when an open-based series crosses its prior-bar value.
• Users can choose raw opening prices or several moving-average transformations.
• An alternate calculation timeframe is available and may change signal timing.
• Trailing-stop inputs do not affect orders because the corresponding exits are commented out.
• The document provides no backtest evidence, so its suggested settings are not validated here.

Tags

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