Smoothed Moving Average Crossovers with Phase Zones and EMA Context

Summary

This strategy compares a simple moving average and an exponential moving average of the selected price source, both using a configurable smoothing length. An offset shifts the simple average upward and the exponential average downward. A cross of the shifted lines opens a long position, while a downward cross closes it; the colored area between them depicts which line is higher. The script also plots five additional exponential moving averages, from 13 to 200 periods, as visual context.

The accompanying description suggests using the zone to gauge direction and avoiding choppy conditions, and it mentions the 13- and 26-period averages as possible confirmation. However, the code does not use those additional averages to confirm entries or exits. The source specifies 10% of equity per trade, initial capital of 10,000, and a 0.1% commission, but the document provides no backtest results. The shifted averages are simple price-smoothing calculations rather than independently defined phase measures, and crossover signals can lag or whipsaw in ranging markets.

Key ideas

• The strategy opens long positions when the offset simple average crosses above the offset exponential average.
• It closes the long position when the shifted averages cross downward.
• A colored zone shows which shifted average is higher, while five additional EMAs provide chart context.
• The additional EMAs are plotted but do not affect the strategy's trading rules.
• The document supplies commission and position settings but no evidence of backtested performance.

Tags

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