EMA Options Clouds With Signals

EMA Clouds for Options!

This indicator can help you confidently open and close options positions. Note that you should set stop a little below midline EMA . Risk reward for good signals is fairly consistent in profit. Most of the simulations I ran got between 1:2 and 1:4 profits. The losers usually can be avoided by making sure you are not in a choppy trading channel. Wait for EMAs to start separating and don't blindly follow every buy/sell.

3 wave EMA + Clouds:
EMA 8/32/64

Signals (off by default - turn on in settings):
Buy Call/Sell Call (open/exit call positions)
Buy Put/Sell Put (open/exit put positions)

Enter signals bullish:
Close over Middle EMA AND Short EMA > Middle EMA > Long EMA

Exit signals bullish:
Close under Middle EMA OR trend turns bearish (Short EMA < Middle EMA < Long EMA )

Enter signals bearish:
Close under Middle EMA AND Short EMA < Middle EMA < Long EMA

Exit signals bearish:
Close over Middle EMA OR Short EMA > Middle EMA > Long EMA

Cloud Colors (Default)
Green: Bullish
Red: Bearish
White: Chop/Transition
Open-source script

In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.


The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

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