Improved EMA Trend + ATR Strategy with ArrowsThis strategy is built around a simple idea: strong directional moves often begin after periods of low volatility. Instead of chasing trends late, it waits for price compression and then trades the breakout when expansion begins.
The approach combines volatility structure and trend alignment to reduce random entries.
Core Concept
Markets cycle between quiet phases and expansion phases.
When volatility contracts, it often leads to a stronger move once price breaks out of that range.
This strategy attempts to capture that transition.
How It Works
1. Volatility Compression Detection
A squeeze condition is identified when Bollinger Bands contract inside Keltner Channels.
This signals reduced volatility.
2. Squeeze Release
The strategy waits for volatility to expand again.
Trades are only considered when the squeeze ends.
3. Breakout Confirmation
Entries occur when price breaks above or below the Bollinger Bands after the squeeze release.
4. Trend Alignment
A long-term EMA is used to filter direction:
Above EMA → bullish bias
Below EMA → bearish bias
This helps reduce counter-trend trades.
5. Risk Management
Stop-loss and take-profit levels are based on ATR.
This allows exits to adapt to current market volatility.
A configurable risk-to-reward ratio defines profit targets.
Key Features
Structured volatility-based entries
Trend confirmation filter
ATR-based dynamic risk control
Commission and slippage included for realistic testing
No repainting logic
Best Conditions
This type of strategy tends to perform better during:
Volatility expansion phases
Strong directional markets
Assets that experience compression before breakouts
It may underperform in slow, range-bound environments.
Important Notes
This strategy is designed for research and backtesting purposes.
Performance will vary across different markets and timeframes.
Always evaluate across multiple conditions before considering live deployment.
استراتيجية Pine Script®
