GOLDM Dow Theory – 1H Trend + 5m Pullback

1. Strategy Overview

Instrument: MCX GOLDM
Chart timeframe: 5 minutes
Side: Long-only
Position size: Fixed 3 lots
Core idea:

Trade only in 1H uptrend, enter after a 5m pullback and breakout, with basic volume/volatility filters and ATR-based SL/TP.

2. High-Level Logic Flow (Per Bar)

On every 5-minute bar, the script does this:

Update session/time, volume, and ATR filters

Read 1H trend from higher timeframe

Update 5m pullback state (whether a valid dip happened)

Check if there is a valid breakout back in the direction of the 1H trend

If all filters + conditions align → enter Long (3 lots)

While in a trade:

Manage SL/TP using ATR

Close trade if 1H trend flips down or price closes below 5m EMA

Everything else (plots, alerts) is just for visibility and convenience.

3. Inputs & Configuration

Main inputs:

pullbackLookback – how many 5m bars to look back to detect a pullback

breakoutLookback – how many bars to consider for recent swing high

emaLenTrendFast / emaLenTrendSlow – 1H EMAs (50/200) for trend

emaLenPullback – 5m EMA used for pullback logic (default 20)

tradeSession – default "0900-2315" (you can change)

volLookback, volMult – volume filter

atrLen, atrSmaLen – ATR filter

slATRmult (1.4), tpATRmult (3.0) – ATR multiples → ~1.4 : 3 RR

4. Session / Time Filter
tradeSession = "0900-2315"
inSession = not useSessionFilter or not na(time(timeframe.period, tradeSession))


Only allows entries when the current bar’s time is inside 09:00–23:15.

If useSessionFilter is false, this filter is ignored.

No trade opens outside this window, but existing trades can still exit.

5. Volume & Volatility Filters
Volume Filter
avgVol = ta.sma(volume, volLookback)
highVolume = not useVolumeFilter or (volume > avgVol * volMult)


If enabled, current bar’s volume must be greater than average volume × multiplier.

Purpose: avoid thin, illiquid periods.

ATR Filter
atr5 = ta.atr(atrLen)
atrSma = ta.sma(atr5, atrSmaLen)
goodATR = not useATRFilter or (atr5 > atrSma)


If enabled, current ATR must be above its own moving average.

Purpose: avoid flat / extremely low-volatility periods.

Only if both highVolume and goodATR are true, the system considers entering.

6. Higher Timeframe Trend (1H)
emaFast1h = request.security(syminfo.tickerid, "60", ta.ema(close, emaLenTrendFast), ...)
emaSlow1h = request.security(syminfo.tickerid, "60", ta.ema(close, emaLenTrendSlow), ...)

trendUp = emaFast1h > emaSlow1h
trendDown = emaFast1h < emaSlow1h


On the 1-hour timeframe:

If EMA Fast (50) > EMA Slow (200) → trendUp = true

If EMA Fast (50) < EMA Slow (200) → trendDown = true

This is the core trend filter:
We only look for longs when trendUp is true.

7. 5-Minute Structure Logic (Dow-style)
7.1 Pullback Detection
emaPull = ta.ema(close, emaLenPullback)
pulledBackLong = ta.lowest(close, pullbackLookback) < emaPull


A pullback is defined as:
In the last pullbackLookback bars, price closed below the 5m EMA (emaPull) at least once.

This indicates a dip against the 1H uptrend.

A state flag tracks this:

var bool hadLongPullback = false
hadLongPullback := trendUp and pulledBackLong ? true : (not trendUp ? false : hadLongPullback)


When:

trendUp AND pulledBackLong → hadLongPullback = true.

If the trend stops being up (trendUp = false), flag resets to false.

So the system remembers:

“There has been a proper dip while the 1H uptrend is active.”

7.2 Breakout Confirmation
recentHigh = ta.highest(high, pullbackLookback)
breakoutUp = close > recentHigh[1]


After a pullback, we wait for price to close above the highest high of recent bars (excluding the current one).

This mimics:
“Higher high after a higher low” → breakout in Dow Theory terms.

8. Final Long Entry Logic

The base entry condition:

baseLongEntry =
trendUp and
hadLongPullback and
breakoutUp and
close > emaPull


Translated:

1H trend is up (trendUp).

A valid pullback happened recently (hadLongPullback).

Current candle broke above the recent swing high (breakoutUp).

Price is now back above the 5m EMA (pullback is resolving, not deepening).

Then filters are applied:

longEntryCond =
baseLongEntry and
inSession and
highVolume and
goodATR and
not isLong


So a long entry only occurs if:

Core structure conditions (baseLongEntry) are true

Time is within session

Volume is high enough

ATR is healthy

You are not already in a long

When longEntryCond is true:

if longEntryCond
strategy.entry("Long", strategy.long, comment = "Dow Long: Trend+PB+BO")
hadLongPullback := false


Enters 3 lots long (as per default_qty_type + default_qty_value).

Resets hadLongPullback so we don’t re-use the same pullback.

9. Exit Logic

There are two exit layers:

9.1 Logical Exit (Trend or Structure Change)
exitLongTrendFlip = trendDown
exitLongEMA = ta.crossunder(close, emaPull)
longExitCond = isLong and (exitLongTrendFlip or exitLongEMA)


If in a long:

Exit when trend flips down (1H EMA50 < EMA200), OR

Price crosses below 5m EMA (pullback may be turning into reversal).

Then:

if longExitCond
strategy.close("Long", comment = "Exit Long: Trend flip / EMA break")


This closes the position at market (on bar close).

9.2 ATR-based Stop Loss & Take Profit
if useSLTP and isLong
longStop = strategy.position_avg_price - atr5 * slATRmult
longLimit = strategy.position_avg_price + atr5 * tpATRmult
strategy.exit("Long SLTP", "Long", stop = longStop, limit = longLimit)


SL = entry price – 1.4 × ATR(14, 5m)

TP = entry price + 3.0 × ATR(14, 5m)

This gives roughly 1.4 : 3 RR.

If SL or TP is hit, strategy.exit will close the trade.

So exits can come from:

Hitting Stop Loss

Hitting Take Profit

OR logic-based exit (trend flip / EMA break)

10. Alerts

Two alertconditions:

alertcondition(longEntryCond, title="Long Entry Signal",
message="GOLDM LONG: 1H Uptrend + 5m Pullback Breakout + Filters OK")

alertcondition(longExitCond, title="Long Exit Signal",
message="GOLDM LONG EXIT: Trend flip or EMA break")


You can set TradingView alerts based on:

“Long Entry Signal” → tells you when all entry conditions align.

“Long Exit Signal” → tells you when the logic-based exit triggers.

(ATR SL/TP exits won’t auto-alert unless you separately set price alerts or add extra conditions.)

11. Mental Model Summary (How YOU should think about it)

For every trade, the system is basically doing this:

Is GOLDM in an uptrend on 1H?
→ If no: do nothing

Did we get a clear dip below 5m EMA in that uptrend?
→ If no: wait

Did price then break above recent highs and reclaim EMA20?
→ If yes: this is our Dow-style continuation entry

Is market liquid and moving (volume + ATR)?
→ If yes: go Long with 3 lots

Manage with:

ATR SL & TP

Exit early if 1H trend flips or price falls back below EMA20