Zero-Line Wave Trend Entries Filtered by the 200-Period EMA

Summary

This strategy pairs a 200-period EMA trend filter with a Wave Trend oscillator zero-line signal. It enters long when price is above the EMA and the oscillator crosses above zero. It enters short when price is below the EMA and the oscillator crosses below zero. The oscillator is calculated from price relative to an EMA and a smoothed measure of price deviation.

The source script shows the entry conditions, but no exit rules, stop settings, or backtest results. The accompanying description recommends considering an ATR-based stop and mentions that different markets and timeframes may require parameter adjustments. Those are suggestions rather than tested findings in the document. Without specified exit management or performance evidence, the entry logic alone is insufficient to assess returns, drawdowns, or trading costs.

Key ideas

• The 200-period EMA sets the direction filter for trades.
• A Wave Trend zero-line crossover provides the momentum entry trigger.
• Long entries require price above the EMA, while short entries require price below it.
• The source does not specify exits, stops, or backtest results.
• ATR-based risk controls and market-specific parameter tuning are suggested but not evaluated.

Tags

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