TEMA Crossover Strategy with Candle Direction Filtering

Summary

This strategy uses a fast and a slow Triple Exponential Moving Average (TEMA) to trade trend changes. The described default periods are 5 and 8. A cross of the fast line above the slow line triggers a long entry; a cross back below closes the long. An optional direction filter checks price movement over a configurable number of bars before allowing a long entry. Although the prose mentions short trades, the supplied logic only enters long positions and closes them on a bearish crossover.

The document explains that TEMA is intended to smooth price noise and help identify intermediate-term trends, but it still lags and may miss timely entries. Ranging conditions can also make signals difficult to sustain, and the period choices need testing. Published backtest settings specify BTC/USDT futures over about a year, using daily bars with hourly base data; the document does not report performance metrics or establish that the strategy is profitable. It provides configurable date bounds and a candle-direction filter, but no stop-loss or position-sizing method is described.

Key ideas

• The strategy enters long when a fast TEMA crosses above a slower TEMA.
• A bearish crossover closes the long position in the supplied trading logic.
• An optional price direction check can filter long entries.
• TEMA lag and ranging markets are stated limitations, and no backtest results are reported.

Tags

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