Quadruple EMA Breakouts With Previous-Bar Levels and Risk Targets

Summary

This strategy uses four exponential moving averages, calculated over 20, 50, 100, and 200 bars, to filter directional trades. A long entry requires the close to be above all four averages and to exceed the previous bar’s high; a short entry requires the close below all four averages and below the previous bar’s low. It prevents simultaneous long and short positions and can limit each trade type to one entry per day.

The initial stop is set at the previous bar’s low for longs or high for shorts, with a target based on a configurable risk-to-reward multiple. Optional trailing stops can be enabled, and the exit logic also reacts to the close moving below the shorter averages for longs. The supplied excerpt does not include the full script or report performance results. The title mentions support and resistance, but the shown entry logic uses moving averages and prior-bar extremes; no evidence of profitability or robustness is provided.

Key ideas

• Long entries require a close above four EMAs and above the previous bar’s high.
• Short entries require a close below four EMAs and below the previous bar’s low.
• Stops reference the previous bar’s opposite extreme, while targets scale with initial risk.
• Optional settings limit daily entries and add trailing exits.
• The excerpt contains no performance results and does not show the complete strategy code.

Tags

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