Up Down Candlestick Signals with Moving Average Control
Summary
This strategy identifies basic bullish and bearish candle patterns: a positive candle opening above the prior close triggers a buy condition, while a negative candle opening below the prior close triggers a sell condition. The script can use these conditions directly or filter them with a short and long simple moving average. In the filtered mode, a short-average crossover and the relative timing of recent buy and sell signals produce entry and exit markers.
The strategy is long-only and includes an optional moving-average control, a date range for backtesting, and chart markers. The published script lists configurable average lengths and backtest dates, but supplies no performance results or comparison between the filtered and unfiltered variants. It uses limit entries at the closing price and specifies no commission in its settings, so actual execution costs and fills could materially change results. The document gives a simple rule set, not evidence that the signals are profitable or robust.
Key ideas
- A buy setup requires a rising candle that opens above the previous close.
- A sell setup requires a falling candle that opens below the previous close.
- An optional moving-average filter uses short and long averages to control trades.
- The script provides a date-limited backtest option but reports no results.
- Limit entries and zero stated commission may not reflect real trading conditions.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.