Trading EMA Retests After a 9/20 Crossover
Summary
This strategy uses a crossover between the 9-period and 20-period exponential moving averages to set a directional bias. After a bullish crossover, it waits for price to touch either average and then close on an up candle; after a bearish crossover, it applies the inverse conditions. Entries are limited to the configured session, which defaults to 9 a.m. to 4 p.m. India time.
The stop is placed at the signal candle's low for a long position or high for a short, and the target is set using a configurable risk-to-reward multiple. The script also plots entry labels and provides alert conditions. Although it is presented as a backtestable strategy, the document provides no backtest results or market-specific evidence. The retest test accepts a touch of either average, and the described rules do not address slippage, trading costs, position sizing, or how performance may vary across timeframes and instruments.
Key ideas
- A 9-period and 20-period EMA crossover determines the permitted trade direction.
- A trade setup requires a touch of either EMA and a candle that closes in the direction of the bias.
- Entries are restricted to a configurable session, defaulting to daytime hours in India.
- Stops use the signal candle's extreme, and targets use a configurable risk-to-reward multiple.
- The document supplies strategy rules but no performance evidence or trading-cost analysis.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.