Short EMA-Crossover Strategy with Bearish Slope and Session Filters

Summary

This Pine strategy opens short positions when a fast moving average crosses below a slow one. The average type and lengths are configurable, and an optional slope filter requires both averages to be declining beyond set thresholds. An optional session window limits entries to specified trading hours, with a setting to close an open short when that session ends. A later crossover of the fast average above the slow average closes the short.

The script plots the averages and can shade the chart by trend direction. It provides an example of combining a crossover signal with slope and time filters, but the document gives no performance results or tested market details. Despite its title, the strategy does not trade options: its entries are short positions in the chart instrument. The source excerpt ends during the background-color expression, so the displayed code may be incomplete.

Key ideas

• A fast moving average crossing below a slow moving average triggers a short entry when the other enabled filters pass.
• The optional slope filter requires both averages to be falling beyond their configured thresholds.
• An optional session filter restricts entries and can close a short after the session ends.
• The document provides no backtest evidence and labels the strategy as option selling despite describing short trades in the chart instrument.

Tags

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