Three Soldiers and Three Crows with Moving Average Trend Filters

Summary

This strategy pairs two three-candle reversal patterns with a pair of configurable moving averages. A long signal requires three rising candles with successively higher closes, plus price above both averages; a short signal uses three falling candles with successively lower closes, plus price below both. The averages can use several calculation methods and are based on a selectable price source. An optional cooldown blocks repeat entries in the same direction for a chosen number of bars.

The provided script is the main evidence: it specifies entries and includes commission, margin, and position settings, but the document gives no strategy report results or discussion of market-by-market performance. It contains no explicit stop-loss or profit target, and the cooldown defaults to a long interval that could suppress later signals. Candlestick patterns and moving-average filters can still generate false signals, especially in choppy conditions; the script's parameters should not be treated as validated settings.

Key ideas

• The long setup combines three rising candles with price above both moving averages.
• The short setup combines three falling candles with price below both moving averages.
• Several moving average types and a selectable price source are available as filters.
• An optional bar-based cooldown limits how often same-direction signals can trigger.
• The document provides code but no performance evidence or explicit stop-loss rules.

Tags

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