Trend Pullback Entries with EMA, MACD, RSI, and ADX Confirmation

Summary

This strategy seeks trades in the direction of a broader trend, defined by price and the 50-period EMA being above or below the 200-period EMA. It then looks for a pullback to the 25-period or 50-period EMA, followed by aligned fast and slow EMA crossovers and a MACD crossover. RSI, directional movement, and an ADX threshold provide additional momentum and trend-strength filters; a volume-above-average condition can also be enabled.

Trades use ATR-based stop, target, and trailing distances, with signals evaluated at bar close and no pyramiding. The document provides implementation rules and configurable defaults, but no historical performance results or evidence that the combination is profitable. It describes the strategy as intended for testing and adaptation; its 1-hour framing and indicator settings do not establish suitability for other markets or timeframes. The multiple confirmation requirements may reduce the number of entries, while their effectiveness depends on the instrument, data, execution assumptions, and chosen settings.

Key ideas

• The strategy permits longs when price and the 50-period EMA are above the 200-period EMA, with the inverse structure for shorts.
• Entries require a pullback, fast EMA crossover, MACD confirmation, RSI threshold, directional bias, and sufficient ADX.
• A volume filter optionally requires current volume to exceed its moving average.
• ATR sets stop, profit target, and trailing distances for open positions.
• The document supplies rules and defaults but no backtest evidence of performance.

Tags

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