The Price Distance rule fires when price moves a configured distance from an EMA band.
For the indicator formula, see EMA — Formula.
Signals
| Condition | Signal |
|---|---|
| Price ≥ MA + band | Buy |
| Price ≤ MA − band | Sell |
Default parameters
| Parameter | Default |
|---|---|
| maPeriod | 20 (EMA length) |
| type | percentage |
| value | 1 |
type can be percentage (band as % of MA) or distance (absolute price units).
Where to use it
Entry, increase, reversal, exit, and directional filters. Trend-classified.
Tips
- Percentage bands scale with price level; absolute distance suits stable-priced assets.
- Useful for breakout confirmation after price stretches from the mean.
Example
maPeriod 20, type percentage, value 1 on BTC/USDT 1h. EMA = $100,000 → buy band starts at $101,000 (+1%). Close $101,050 → buy. Close $99,000 (below MA −1%) → sell. Useful to confirm breakouts, not every touch of the MA.