EMA Moving Away

EMA Moving Away tracks how far price drifts from an exponential moving average. When a sequence of candles pushes a set percentage away from the EMA, the strategy bets on a snap back to the mean.

The setup focuses on the long side: after an extended bearish move drives price below the EMA by MovingAwayPercent, a position is opened. Body‑size and streak filters can be added to ensure the move is stretched rather than noisy. A percentage stop‑loss protects capital if the reversion fails.

Details

• Data: Price candles.
• Entry Criteria:
  • Long: Close below EMA by MovingAwayPercent with required streak/size filters.
  • Short: not used.
• Exit Criteria: Return to EMA or stop‑loss hit.
• Stops: Percentage stop based on StopLossPercent.
• Default Values:
  • EmaLength = 55
  • MovingAwayPercent = 2.0
  • StopLossPercent = 2.0
• Filters:
  • Category: Mean reversion
  • Direction: Long only
  • Indicators: EMA
  • Complexity: Moderate
  • Risk level: Medium