This script uses data from last 20 bars on 1H to compute the EMA and applies it to lower TFs. Optimal for scalping SP mini and CL on the 5M. It is an advantage to have the 20EMA on the 5M as well on the same screen.
Hi. Your script looks interesting. Do you mind telling us on the scalping strategy using this indicator?
Zoen_Trieste
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@Alif12399, Hi!
As in the example here, the higher 1H 20 EMA / 4H 20EMA provide clues as to where the trend might change into a trading range or reverse to opposite direction. As an impulse move develops, I use the 5M 20EMA for entries as the price pullbacks to it, that is if the price is far above the 5M 20EMA after the impulse move. As soon as I see that bears are able to leave gaps between the highs of 5M bars and the 5M 20EMA, I consider that bull trend weak and exercise extra caution as it can transition into a trading range or even an opposite trend.
TheDemonTrader
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@Zoen_Trieste, understood. I think this script is cool. I'm testing to add MACD to see if the divergence at histogram can help to boost confidence to make entries/exits using this setup. Would you like to make a few posts of your entries and exits with some explanation/justification of your action? Few for longs and a few more for shorts would be splendid. I'm sure many people can benefit from your setup. Thanks.
Zoen_Trieste
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@Alif12399, why not, lets do it. Where shall I post though?
Zoen_Trieste
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@Alif12399, Here's an example how MA gap implies a transitioning of bull breakout into a trading range. Hope you'll find it useful.