Trend Signals from Multiple EMAs and Supertrend Filters

Summary

This document describes a trend-following system that combines three EMAs with three Supertrend indicators. It enters long when the 79-period EMA is below the 22-period EMA, price is above the 200-period EMA, and price is above all three Supertrend lines. The short setup reverses those conditions. Opposite signals are intended to close existing positions. The listed indicator periods are 22, 79, and 200 for the EMAs and 50, 13, and 6 for Supertrend; the source specifies a common Supertrend factor of 6.

The rationale is that agreement across several indicators may filter weak signals and keep trades aligned with a broader trend. The document identifies lag, choppy-market whipsaws, parameter sensitivity, and the absence of an explicit stop-loss as limitations. It suggests testing stop rules, volume and trend-strength filters, regime detection, and position scaling. The published settings describe a one-month BTC/USDT futures backtest, but no performance results are provided, so they do not establish profitability or robustness.

Key ideas

• Long and short entries require price and EMA alignment with all three Supertrend indicators.
• Opposite signals are intended to close positions and reverse direction.
• The document warns that lag and sideways markets can produce late or false signals.
• No explicit stop-loss is described, and no backtest performance results are supplied.

Tags

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