Daily Trend Warning
This control checks whether the 18-period daily EMA is above or below the 40-period daily EMA.
If the 18-day EMA is above the 40-day EMA, the warning is triggered when attempting a short trade, since the position would be taken against the dominant moving average.
If the 18-day EMA is below the 40-day EMA, the warning is triggered when attempting a long trade, as this would go against the average daily price delta.
Purpose
Section titled “Purpose”The purpose of this risk control is to incorporate a simple, standardized heuristic rule that approximates the average price trend. It is intended for traders who operate based on daily price data or intraday price action, using a straightforward and consistent approach.
Scope and limitations
Section titled “Scope and limitations”This element does not predict price direction. It only reflects the general trend context.
It is not related to the distribution of daily or intraday session directions. It is purely a tool for monitoring alignment with the broader trend.