Analysis gives the possibility to combine multiple time frames of along with a triplet of exponential moving averages. This can provide insight into potential scalp, swing and longer term trades, depending on your time frame. The use of this indicator with it's setup is based off the the Scalp Setup Alerts provided by Roensch Capital.
The primary use for this script is to help with intraday scalp set ups. Using the Daily , turned on by default, we can look for price to respect and bounce from one of the lines (support or resistance) back toward equilibrium, we can also look for price to bounce off of equilibrium and move back toward support or resistance.
The chart attached shows AMD bouncing off of the Daily time frame multiple times (see yellow boxes), often with confirmation given by an increase in which is often far higher than the average . In many of these cases a short position could've been opened or put option could have been placed with a profitable outcome.
Every line projected onto the chart via this indicator has the potential to create support or resistance as well as causing 'hang ups', meaning price loses it's momentum, slows down and hangs out in the particular area. This is shown on the chart within the green box.
Chart walkthrough - See attached chart
After a rejection off of the Daily Resistance line (depicted by the white circle), price starts to move back toward Daily Equilibrium. In order to reach this line, price needs to move through the 20EMA (white) and 50EMA (purple), the Weekly Resistance (red circles) and the 200EMA (orange). All of these lines are a part of this single indicator.
The 20EMA seems to offer little resistance but follows the price on it's move, offering some resistance to a volatile move upward. Initially upon contact with the 50EMA, price hangs up and bounces above and below the line whilst finding support on the Weekly Resistance at the same time. This causes a 'hang up' or sideways movement for around 20 minutes of trading. A potential trade may have entered at the white circle with a Resistance rejection and exited upon contact with the 50EMA in anticipation of multiple EMAs and lines converging which is known to cause price movement to slow.
Eventually with an increase in , price breaks below the 20EMA (white), 50EMA (purple) and the Weekly (red circles). Price then finds support on the 200EMA (orange), although there was potential for the price to fall to the Daily Equilibrium (solid blue). As the Red lines tend to act more often as resistance as opposed to support (price is rarely above these lines for extended periods), the trade from earlier may have profited more by awaiting contact with the 200EMA before exiting, taking the assumption that the Weekly Resistance was more likely to act as resistance than support.
A period of consolidation in the green box, around the Weekly Resistance, 20EMA, 50EMA and with support from the 200EMA eventually resulted in another break out where the price came back up to the Daily Resistance. Prior to the end of this trading day, there were two more opportunities for scalp setups based off of the price showing consistent rejections off the Daily Resistance back down to the 50EMA.
In the final example, price breaks above the Daily Resistance but quickly rejects off of the Monthly Resistance. For examples where the Resistance or Support or broken, it can help to look at an indicator such as the to look for or divergence.
Just as this example shows bounces and rejection off of Resistance, the same applies around the Equilibrium and Support lines.
The perfect scenario would be to find a ticker where there has already been two or three bounces off of one of these levels, with the goal of taking the trade on the next bounce and either using a percentage price target or technical price target based off of the EMAs or lines. If there are EMAs close in the direction you want to take the trade, there is a higher chance of hang ups and reversals, so a clear run is the more desired trade set up.
You can also look for these indicator lines to stack up in order to form a stronger . For example the 200EMA and Daily Equilibrium being close to each other may suggest it would take more of an effort to break both of these levels, but one by itself may break more easily.
In the settings for the indicator, almost everything you might want to change can be done from the Input tab.
The three options for (daily, weekly and monthly) allow for analysis on multiple time frames. Daily is turned on as standard.
Standard Deviation Multiplier is set to 2 as standard, this effects the distance of the from the equilibrium line. This seems to be a level that works well with finding lines, however if there is excessively high or low , occasionally the lines can be thrown off. You can adjust this level if required to find a 'sweet spot' where price likes to reject or find support.
The colors for all VWAPs can be adjusted via the Inputs tab, however if you'd like to change the type of line these are depicted as, this can be done from the Styles tab.
The 3 EMAs (20, 50 and 200) can be toggled on or off and also have their color changed. The style of the lines can be adjusted from with the Styles tab if required.
Dentro do verdadeiro espírito TradingView, o autor deste script publicou ele como um script de código aberto, para que os traders possam compreender e checar ele. Um viva ao autor! Você pode usá-lo gratuitamente, mas a reutilização deste código em uma publicação é regida pelas Regras da Casa. Você pode favoritá-lo para usá-lo em um gráfico.
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