---
title: "Bullish Bursts Strategy"
slug: "strategies-and-features-bullish-bursts"
description: "Discover the \"Bullish Bursts\" strategy, a bullish trading approach utilizing moving averages and RSI to identify profitable opportunities. Understand the open and close conditions, earnings handling, and specific options selections that have outperformed the market across various timeframes, including the Great Recession."
tags: ["Bullish Bursts", "Bullish", "Moving Averages", "Simple Moving Average", "Delta", "Call Options", "TradeMachine Features", "Earnings Trading", "Market Analysis Techniques"]
updated: 2024-07-25T15:47:58Z
published: 2024-07-25T15:47:58Z
canonical: "learn.trademachine.com/strategies-and-features-bullish-bursts"
---

> ## Documentation Index
> Fetch the complete documentation index at: https://learn.trademachine.com/llms.txt
> Use this file to discover all available pages before exploring further.

# Bullish Bursts Strategy

This is a discussion of the "Bullish Bursts" strategy. See the best combination of moving averages and RSI that have outperformed the market over 10-, 5-, 3-, 2-, and 1-year, as well as during the Great Recession with a bullish strategy.

### Overview

- Long call
- 1 leg

### Bullish Bursts Strategy Settings

#### Bullish Bursts Open Conditions:

- Stock price crosses up through 10-day EMA
- Stock is above the 200-day SMA
- 50-day SMA is above the stock price
- 20-day RSI is below 70

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%28107%29.png)

#### Details on Options TradeMachine is Selecting for Bullish Bursts Strategy:

- 1x **long 40 delta** call near **14 days to expiration**

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%28106%29.png)

#### Earnings Handling for Bullish Bursts Strategy:

- [Never Trade Earnings](/v1/docs/earnings-and-trademachine)

#### Bullish Bursts Close Conditions:

- Gains are above 40%
- Losses are above 60%
- Options reach expiration

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%28108%29.png)

#### Open next trade for Bullish Bursts:

- [At Normal Time](/v1/docs/what-does-the-and-open-next-trade-at-normal-time-and-re-open-immediately-mean)

![image.png](https://cdn.document360.io/b73389a5-b202-4bf4-8df2-8c69e8edbb3b/Images/Documentation/image%2871%29.png)

[Video Transcript](https://learn.trademachine.com/docs/bullish-bursts-strategy-transcript)

## Related

- [Getting Started with the Today Tab](/getting-started-today-tab.md)