Description Strategy Name and Purpose FVG Positioning Average with 200EMA Auto Trading [Pakun]
This strategy uses Fair Value Gaps (FVG) combined with a 200-period Exponential Moving Average (EMA) and Average True Range (ATR) to generate trend-based trading signals. It is designed to help traders identify high-probability entry points by leveraging the gaps between fair value prices and current market prices.
Originality and Usefulness This script combines multiple indicators to create a cohesive trading strategy that is greater than the sum of its parts. While FVG is a powerful tool on its own, combining it with the EMA and ATR adds layers of confirmation and risk management, enhancing its effectiveness. Here’s how the components work together:
Fair Value Gap (FVG): Identifies gaps in the market where price action has not fully filled, indicating potential reversal or continuation points. 200-period Exponential Moving Average (EMA): Acts as a trend filter to ensure trades are taken in the direction of the overall trend, improving the probability of success. Average True Range (ATR): Used to filter out insignificant gaps and set dynamic stop-loss levels based on market volatility, enhancing risk management.
Entry Conditions
Long Entry The close price crosses above the downtrend FVG. The close price, FVG up average, and down average are all above the 200 EMA, indicating a strong bullish trend.
Short Entry The close price crosses below the uptrend FVG. The close price, FVG up average, and down average are all below the 200 EMA, indicating a strong bearish trend.
Exit Conditions For long positions, the stop loss is set at the recent low, and the take profit is set at a point with a risk-reward ratio of 1:1.5. For short positions, the stop loss is set at the recent high, and the take profit is set at a point with a risk-reward ratio of 1:1.5.
Risk Management Account Size: 1,000,000 yen Commission and Slippage: 2 pips commission and 1 pip slippage per trade Risk per Trade: 10% of account equity The stop loss is based on the recent low or recent high, ensuring trades are exited when the market moves against the position.
Settings Options FVG Lookback: Set the lookback period for calculating FVGs. Lookback Type: Choose the type of lookback (Bar Count or FVG Count). ATR Multiplier: Set the multiplier for ATR to filter significant gaps. EMA Period: Set the period for the EMA to adjust the trend filter sensitivity. Show FVGs on Chart: Choose whether to display FVGs on the chart for visual confirmation. Bullish/Bearish Color: Set the color for bullish and bearish FVGs to distinguish them easily. Show Gradient Areas: Choose whether to display gradient areas to highlight the zones of interest.
Sufficient Sample Size The strategy has been backtested with 113 trades, providing a sufficient sample size to evaluate its performance.
Notes This strategy is based on historical data and does not guarantee future results. Thoroughly backtest and validate results before using in live trading. Market volatility and other external factors can affect performance and may not yield expected results.
Acknowledgment This strategy uses the FVG Positioning Average Strategy [LuxAlgo] indicator. Thanks to [LuxAlgo] for their contribution.
Clean Chart Explanation The script is published with a clean chart to ensure that its output is readily identifiable and easy to understand. No other scripts are included on the chart, and any drawings or images used are specifically to illustrate how the script works.
No verdadeiro espírito do TradingView, o autor desse script o publicou como código aberto, para que os traders possam compreendê-lo e analisá-lo. Parabéns ao autor! Você pode usá-lo gratuitamente, mas a reutilização desse código em publicações é regida pelas Regras da Casa. Você pode favoritá-lo para usá-lo em um gráfico.
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