4 EMA Crossover Strategy (CLEVER MODE)

This strategy — “4 EMA Crossover Strategy (CLEVER MODE)” — is a simple but structured trend-following system built in Pine Script v5.
It uses four Exponential Moving Averages (EMAs) to define trend direction and timing, with an optional RSI filter and built-in take profit / stop loss risk control.

Let’s describe it clearly step by step 👇

🧠 Core Idea

The strategy is based on the principle that when shorter EMAs are above longer EMAs, the market is in an uptrend, and when shorter EMAs are below longer EMAs, it’s in a downtrend.

It looks for EMA crossovers that confirm strength in the current trend direction and enters trades accordingly.

This makes it a momentum continuation system, not a reversal system.

⚙️ Indicators Used
1. Four EMAs

EMA 8 → Fast

EMA 0→ Medium-Fast

EMA 0 → Medium-Slow

EMA 200 → Slow (defines the dominant long-term trend)

These EMAs work together to detect both short-term and long-term momentum alignment.

2. RSI (Relative Strength Index)

Default period = 14

Used as a trend filter:

RSI > 50 confirms bullish momentum.

RSI < 50 confirms bearish momentum.

Can be turned on or off via settings.

📈 Trend Definition

Bullish Trend (Uptrend) →
EMA(8) > EMA(0) > EMA(0) > EMA(200)

Bearish Trend (Downtrend) →
EMA(8) < EMA(0) < EMA(0) < EMA(200)

This ensures trades are only taken when all EMAs align in one direction — preventing counter-trend entries.

🚀 Entry Rules
🔹 Buy (Long) Signal

Triggered when:

EMA(8) crosses above EMA(0) (momentum crossover)

All EMAs confirm bullish alignment

(Optional) RSI > 50 for extra confirmation

📤 The strategy opens a Long position and automatically sets:

Take Profit (TP) at +2% (configurable)

Stop Loss (SL) at −1% (configurable)

🔻 Sell (Short) Signal

Triggered when:

EMA(8) crosses below EMA(0)

All EMAs confirm bearish alignment

(Optional) RSI < 50 for confirmation

📤 Opens a Short position with:

Take Profit at +2%

Stop Loss at −1%

💰 Trade Management

Each trade uses 10% of account equity (default).

The system automatically closes the position once TP or SL is hit.

Only one position (long or short) can be active at a time.

🧭 Trading Philosophy

This strategy aims to ride strong trends — not to predict tops or bottoms.
By requiring all EMAs to align, it filters out sideways noise.
The RSI filter adds further validation, ensuring entries are supported by momentum strength.

It’s designed to:

Catch medium-term swings.

Stay out of choppy or ranging conditions.

Manage risk with simple percentage-based exits.

🎨 Visuals on Chart

Colored EMAs:

EMA(8): Yellow

EMA(0): Orange

EMA(0): Blue

EMA(200): Purple

BUY/SELL Markers:

Green “BUY” triangle below the candle

Red “SELL” triangle above the candle

These provide clear visual signals for entry points.

🧾 Summary Table
Feature Description
Indicator Type Trend-following momentum crossover
Core Logic 4 EMA alignment + crossover
Optional Filter RSI > 50 / < 50 for confirmation
Entries Long on EMA(8) > EMA(0 XAUUSD BTCUSD EURUSD DXY USOIL ); Short on EMA(8) < EMA(0)
Exits Fixed Take-Profit / Stop-Loss in %
Strengths Clean structure, filters noise, great for trending markets
Weaknesses Lags in sideways markets (EMA systems are trend-dependent)
Best Use Swing trading or intraday trend capture

✅ In short:

The 4 EMA Crossover (CLEVER Mode) strategy is a disciplined trend-following system.
It waits for all EMAs to align, confirms momentum with RSI, and enters when the fastest EMA crosses the short-term EMA — capturing trend continuations with defined TP/SL control.