The Volensy Kenneth EMA Crossover is a long-only trend-following indicator built on the crossover between a fast EMA(20) and a filter EMA(200). Designed specifically for strong trending markets, this indicator generates LONG signals when the short-term trend crosses above the long-term trend filter and tracks position performance in real time through the info panel. Unlike most Volensy indicators that support both long and short signals, the Kenneth EMA Crossover focuses exclusively on long positions, making it a specialized tool for traders who want to ride uptrends in markets with strong bullish bias, such as crypto and growth stocks.

Overview

The philosophy behind the Kenneth EMA Crossover is simplicity and discipline. By using only two moving averages — EMA(20) for the fast signal and EMA(200) for the trend filter — the indicator strips away complexity and focuses on the most fundamental question in trend trading: Is the short-term momentum aligned with the long-term trend?

The EMA(200) is one of the most watched moving averages in all of trading. When price is above the 200 EMA, the asset is generally considered to be in a bullish regime. When the faster EMA(20) crosses above the EMA(200), it confirms that short-term momentum has turned decisively bullish within this already-favorable environment.

The long-only design is intentional. In many markets — particularly crypto and equities — the long-term statistical bias favors long positions. Short selling carries additional risks (unlimited loss potential, borrow costs, short squeeze risk) that this indicator avoids by design. Instead, it focuses entirely on identifying the best long entries in trending environments.

This indicator is ideal for:

• Trend followers who prefer riding sustained uptrends
• Crypto traders seeking long entries in bull markets
• Stock investors looking for momentum confirmation on growth names
• Traders who value simplicity and want a clean, unambiguous signal system

How It Works

EMA(20) — The Fast Signal Line

The 20-period Exponential Moving Average tracks short-term price trends. It responds relatively quickly to price changes, making it sensitive to recent momentum shifts. When price is rising, EMA(20) curves upward. When price stalls or reverses, EMA(20) flattens or turns down.

EMA(20) serves as the “trigger” in this system. Its position relative to EMA(200) determines whether a LONG signal is active.

EMA(200) — The Trend Filter

The 200-period Exponential Moving Average represents the long-term trend. It moves slowly and changes direction only when a significant and sustained price movement occurs. The 200 EMA is widely used by institutional traders and fund managers as a benchmark for whether an asset is in a bullish or bearish environment.

In this indicator, EMA(200) acts as a filter. The indicator only considers long entries when price and EMA(20) are interacting favorably with the 200 EMA. This prevents long entries in bear markets where the probability of upside follow-through is much lower.

Crossover Logic

The signal generation is straightforward:

1. LONG Signal — Generated when EMA(20) crosses above EMA(200). This crossover, sometimes called a “golden cross” variant, indicates that short-term momentum has turned bullish and is now aligned with a position above the long-term trend.

1. Position Tracking — Once a LONG signal is active, the indicator tracks the trade in real time. The info panel displays the entry price, current PnL, and how far price has traveled toward TP1, TP2, and TP3.

1. Exit Conditions — The position is considered closed when price reaches one of the TP levels, hits the 2% Stop Loss, or when EMA(20) crosses back below EMA(200) (signaling that short-term momentum has reversed).

Smart Position Tracking

The Kenneth EMA Crossover includes smart position tracking that:

• Records the exact entry price at the crossover candle’s close
• Calculates running PnL as price evolves
• Tracks which TP levels have been reached
• Computes a cumulative success rate across all signals on the visible chart history

This real-time tracking means you always know exactly where you stand in the current trade without needing external tools or calculations.

Real-Time Success Rate Calculation

The info panel displays a live success rate percentage. This is calculated by analyzing all previous crossover signals on the loaded chart and determining what percentage reached at least TP1 (0.5% above entry) before being stopped out at the 2% SL. This gives you an objective, data-driven measure of how well the indicator performs on your chosen asset and timeframe.

Key Features

• Long-only strategy — Focused exclusively on bullish entries, avoiding the additional risks of short positions
• EMA(20) vs EMA(200) crossover — Uses the most widely respected long-term moving average as a trend filter
• Smart position tracking — Automatic entry price recording and running PnL calculation
• Real-time success rate — Historical win percentage computed across all chart signals
• Three-tier Take Profit: TP1 at 0.5%, TP2 at 1.0%, TP3 at 1.5%
• Fixed 2% Stop Loss for defined downside risk
• Real-time info panel with all trading metrics visible at a glance
• Bar coloring highlighting bullish signal periods
• Clean, simple signal labels — green LONG labels only, no SHORT signals to confuse the analysis
• Configurable alert system for entry, TP, and SL events

Configuration / Settings

Input Parameters

| Parameter | Default | Description |
|———–|———|————-|
| Fast EMA Period | 20 | The period for the fast signal EMA. Lower values produce earlier signals but may increase whipsaws; higher values add lag but improve reliability. |
| Filter EMA Period | 200 | The period for the long-term trend filter EMA. The 200 EMA is standard, but traders may adjust this to 150 or 250 depending on their trend definition. |

Style Settings

| Setting | Description |
|———|————-|
| Show EMA Lines | Toggle the visibility of both EMA lines on the chart. Recommended to keep enabled for visual trend context. |
| Bar Coloring | Toggle candlestick color changes during active LONG signals. When enabled, candles turn green when a LONG position is active. |
| Signal Labels | Toggle the visibility of LONG labels on the chart. |
| Info Panel Position | Select the chart corner for info panel display. |

Trading Signals

LONG Signals

A green LONG label appears when EMA(20) crosses above EMA(200). This is the only signal type this indicator produces.

What to do:

1. Enter a long position at the signal candle’s close price.
2. Set TP1 at 0.5% above entry, TP2 at 1.0%, and TP3 at 1.5%.
3. Place your Stop Loss at 2% below entry.
4. Monitor the info panel as the trade progresses.
5. Consider taking partial profits at each TP level.

Why No SHORT Signals?

The Kenneth EMA Crossover is designed as a long-only system for several reasons:

• Statistical edge: In crypto and equities, the long-term bias is generally upward. Long-only strategies capture this inherent drift.
• Reduced complexity: By eliminating short signals, the indicator simplifies decision-making. You either have a LONG signal or you wait.
• Risk management: Short positions carry theoretically unlimited risk (price can rise indefinitely), while long positions have defined downside (price cannot go below zero). A long-only system inherently caps tail risk.

When EMA(20) crosses back below EMA(200), the indicator does not generate a SHORT signal. Instead, it simply signals that the bullish condition has ended. This is your cue to close any remaining long position and wait for the next crossover.

Bar Coloring Context

During an active LONG signal:

• Candles are colored green, giving you a visual reminder that a long position is active.
• When the position ends (TP hit, SL hit, or bearish crossover), coloring returns to default.
• The absence of green coloring between signals represents waiting periods where no position should be held.

Best Practices

Recommended Markets

• Cryptocurrency: This is where the Kenneth EMA Crossover shines. BTC, ETH, and major altcoins in bull markets produce sustained trends that this indicator captures exceptionally well. The long-only design aligns perfectly with crypto’s historical upward bias during bull cycles.
• Stocks: Growth stocks, tech sector names, and ETFs like SPY or QQQ. The 200 EMA is a standard institutional filter for equity investing.
• Forex: Can work on pairs with strong directional tendencies, though the lack of SHORT signals limits its usefulness in bearish forex environments.

Recommended Timeframes

• 1-hour: Suitable for active trading. EMA(20/200) crossovers on this timeframe produce moderate-frequency signals.
• 4-hour: Excellent balance of signal quality and frequency. Crossovers on the 4-hour chart represent meaningful trend shifts.
• Daily: The gold standard for this indicator. The 200-day EMA is the most widely followed moving average in all of finance. Crossovers on the daily chart are significant events.
• Weekly: For long-term investors. Signals are rare but represent major trend shifts.

Tips for Best Results

1. Check the broader trend first. Before acting on a LONG signal, zoom out to the daily or weekly chart. Is the asset in an overall uptrend? If so, the signal has a stronger foundation.
2. Use the success rate as your guide. The info panel’s success rate is calculated specifically for your chosen asset and timeframe. If it is above 55-60%, you are working with favorable statistics.
3. Be patient during drawdowns. The 200 EMA is a slow-moving filter. After a significant market pullback, it may take time for EMA(20) to cross back above EMA(200). This patience is a feature, not a bug — it prevents premature entries in bear market rallies.
4. Consider position sizing based on distance from EMA(200). If the crossover occurs very close to the 200 EMA, the trade has a tight structure. If price has already moved significantly above the 200 EMA before the crossover is confirmed, the entry may be stretched.
5. Combine with volume analysis. A golden cross accompanied by above-average volume is more significant than one occurring during a low-volume session.

*See also: Indicators Overview*
*See also: Understanding the TP/SL System*
*See also: Using the Info Panel*
*See also: EMA + MFI Auto TP Strategy* — An EMA crossover strategy that also supports SHORT signals
*See also: Indicator Comparison Guide*