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.
- 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