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The Eaglizer Strategy

A complete, rules-based trading system using the SMA 99, EMA 8/34 crossover, RSI momentum confirmation, and Fibonacci levels. Every entry and exit defined before you trade.

The Four Components

1. The 99 SMA — Long-Term Trend Filter

The 99 SMA acts as the macro trend gate. Price above the 99 SMA = favorable long environment. Price below = do not enter longs. This single filter eliminates the majority of losing trades by keeping you out of bear markets entirely.

2. RSI — Momentum Confirmation

RSI must be above 55 to confirm bullish momentum for a long entry. RSI below 50 on a short setup confirms bearish momentum. This filter ensures you’re only entering when the market has genuine directional momentum — not weak bounces or fading moves.

3. EMA 8 — Short-Term Momentum

The 8 EMA (a Fibonacci number) tracks very recent price momentum and reacts quickly to changes. It acts as the trigger line — its relationship to the 34 EMA signals the entry.

4. EMA 34 — Medium-Term Momentum

The 34 EMA (also Fibonacci) provides a smoothed, medium-term view of price action. It filters out short-term noise while remaining responsive enough to capture real momentum shifts.

The Entry Signal: EMA 8 x EMA 34 Crossover

When the EMA 8 crosses above the EMA 34, with price above the 99 SMA and RSI above 55, a long entry is triggered. When the EMA 8 crosses below the EMA 34, with price below the 99 SMA and RSI below 50, a short entry is triggered. All three conditions must align.

Fibonacci Retracement and Extension

Fibonacci retracement identifies potential support and resistance within a trend. Draw from recent swing low to swing high for longs (or swing high to swing low for shorts). Key retracement levels: 38.2%, 50%, 61.8%. Extension levels (127.2%, 161.8%, 200%) project potential take profit targets for extended moves.

Long Signal Execution — Step by Step

1. Trend confirmation: Price is above the 99 SMA.
2. Momentum confirmation: RSI is above 55.
3. Entry trigger: EMA 8 crosses above EMA 34.
4. Fibonacci analysis: Identify key retracement and extension levels from recent swing points.
5. Take profit targets: Use Fibonacci extension levels. Consider partial profits at each level.
6. Stop loss: Set below the recent swing low or ~4.5% below entry. Never move it wider.
7. Execute: Enter when all conditions align. Let the trade play out to your pre-defined targets.

Result:

Short Signal Execution — Step by Step

1. Trend confirmation: Price is below the 99 SMA.
2. Momentum confirmation: RSI is below 50.
3. Entry trigger: EMA 8 crosses below EMA 34.
4. Fibonacci analysis: Draw from recent swing high to swing low. Identify retracement and extension levels.
5. Take profit targets: Use Fibonacci extension levels downward.
6. Stop loss: Set above the recent swing high.
7. Execute: Enter when all conditions align.

Result: