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# 20 EMA snapback
- URL: https://www.propfirmduel.com/strategies/ema-snapback/
- Published: 2026-10-07T23:00:00.000Z
- Updated: 2026-10-07T23:00:00.000Z
- Description: When price runs more than 3 ATRs away from its 20 EMA, it is stretched like a rubber band. The first candle that turns back is the signal to look for a return toward the average.
- Author: Prop Firm Duel
- Tags: Mean reversion strategies, #strategy, #school-mean-reversion, #level-intermediate, #Import 2026-10-07 22:49

TargetStopStretched to the outer bandBack inside: fade

Example drawing, not live market data.

1Where's the level?

The 20 EMA, and price more than 3 ATRs away from it.

2What's the trigger?

After the stretch, a candle closes back past the previous candle's low (after a run up) or high (after a run down).

3Where is it wrong?

Beyond the extreme of the last 4 closed candles.

4Where does it end?

The 20 EMA.

Markets

Futures, Stocks, Forex, Crypto

Timeframes

1m to 15m

Sessions

Any liquid session

Also called

Rubber band trade, Mean reversion to the 20 EMA

## What it means

When price runs more than 3 ATRs away from its 20 EMA, it is stretched like a rubber band. The first candle that turns back is the signal to look for a return toward the average.

## How it is confirmed without repainting

The stretch is measured on the previous closed candle, and the turn must be a closed candle.

## When it fails

News-driven moves that keep going. Stretched can get more stretched.