Scored Pullback Strategy Using Impulses and Golden-Zone Retracements
Summary
This strategy combines higher-timeframe direction with a lower-timeframe pullback and confirmation setup. It defines bullish or bearish bias using a 15-minute EMA’s position and slope alongside RSI thresholds. Within that bias, it identifies a recent price impulse relative to ATR, then marks a retracement zone based on configurable Fibonacci-style proportions. The setup expires after a freshness window, and a zone touch must receive confirmation within a limited number of bars.
Entries require a reaction within the zone, a directional candle with sufficient body and close strength, and a local EMA trend; a sweep or rejection wick supplies an additional condition. A score adds points for bias, local trend, impulse strength, confirmation, and directional volume, with a minimum score controlling entry. Stops use recent extremes with an ATR buffer, and targets are set by a configurable risk multiple. The supplied code is truncated, and the document gives no backtest results, market-specific validation, or evidence that the scoring rules are profitable.
Key ideas
- The strategy filters entries with 15-minute EMA direction and RSI conditions.
- It defines an ATR-sized impulse and waits for price to revisit a configurable retracement zone.
- A candle confirmation combines directional close strength, body size, and a sweep or rejection condition.
- A five-part score includes trend, impulse, confirmation, and directional volume checks.
- Stops use nearby price extremes with an ATR buffer, while targets use a configurable risk multiple.
- The excerpt provides no performance evidence and omits part of the strategy code.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.