elornehrhart

EHRHART Algo Premium (V.2)

elornehrhart Updated   
EHRHART Algo Premium is a indicator designed to help traders analyze market flow. It work with multiple EMA for identifying the sentiment of market. It's very simple calculation but it's a good help for people who use price action. I think the visual of the chart is very important and and I wanted to create an indicator very visual. I'm price action lover like lots of people and I personally think it's very important to identify the flow of market because buying when the flow of market is up give you better chance to win your trade. It's not BUY and SELL signal, this indicator don't tell u when u need buy or when u need sell, it's principally here for helping the visual of trading chart (have a good clear chart). I decided to post this indicator because people were asking me how it worked and were curious about these colors, so here we go !

This indicator show:

  • The main flow ( green candle=buy pressure /red candle=seller pressure ), it's based on two EMA cross over, this two EMA are editable so u can take the combination you want depending on your trading strategy. When the first EMA is above the second EMA candle becoming green and when the second EMA is above the first EMA candle becoming red.

  • The trend of two EMA crossover (blue=bullish and violet=bearish), it's based on two EMA (two different than main flow) cross over, this two EMA are editable so u can take the combination you want depending on your trading strategy. When the first EMA is above the second EMA the trend becoming blue and when the second EMA is above the first EMA the trend becoming violet.

  • Potential trend reversals (violet candle), it's calculate with the two EMA of the main flow, when these two EMA becoming closer, the candle becoming violet. It meaning that the trend may reversals. I added sensitivity parameter, so u can adjust it depending on your trading strategy, the more sensitive it is, the more candle will be colored violet.

  • A system of RSI print on the chart, when the RSI becoming overbought (more than 75) a red triangle will pop up on the chart, and when the RSI becoming oversold (less than 25) a green triangle will pop up on the chart. U can show or hidden these setting.

  • Bullish candles are represented by hollow candles.

  • Bearish candles are represented by full candles.

You can use this indicator with multiple strategy, I personally use it with price action (support/resistance) and I made it for that (but it's your choice).

This is an example of how I'll use it:


  • Here we can see that the price is coming testing our weakly support, however the main flow is bullish (red candle), so I'm waiting my first signal (violet candle). When the first candle passed violet I decided to enter the trade because violet candle after red candle means that the two EMA start closed to themselves meaning that's the flow may turn green. My second signal will be candle passed green, because it meaning the two EMA start deviate from themselves, buyer are taking advantage. In this situation a green triangle on the support will be my third signal.
Release Notes:
  • The trend of two EMA crossover is now removable in setting.

  • Added one more candle color (rose). It's exactly the same as violet but with different sensitive adjustable, so you can have a degraded for example (depend of your preference setting).

  • ⚠️CARFULE⚠️Now bullish candles are represented by full candles and bearish by hollow.

  • Added support and resistance level, they are calculated using pivot points. Here is an explanation of how they work:

    The indicator identifies peaks (resistance levels) in the price and troughs (support levels). They analyze historical prices and identify points where the price has had a tendency to bounce up (for resistance levels) or down (for support levels) after reaching these levels.

  • Added zero lag EMA. The Zero Lag Exponential Moving Average is a variation of the exponential moving average that aims to reduce the lag associated with traditional moving averages. Here's how it works in the script:

    The formula used to calculate the Zero Lag EMA is:
    zlema=ema(src0+src0−src0,length0)
    In this formula:
    src0 represents the price series to use for calculating the exponential moving average.
    lag is calculated as the lower integer part of (length0−1)/2(length0−1)/2. This is what
    allows the price series to be shifted.

    +src0−src0+src0−src0 is used to eliminate the lag by adjusting the price
    series.

    (The length used to calculate the zero lag EMA is 144.)

    A parameter is provided to allow the user to choose whether or not to display the Zero Lag EMA on the chart.

    The color of the Zero Lag EMA depends on its value. It is calculated as follows:
    If the Zero Lag EMA is higher than its previous value, the color is green.
    Otherwise, the color is red.
    If it's false, the color is set to a purple color, regardless of the direction of
    the Zero Lag EMA.

    In summary, the Zero Lag EMA aims to reduce the lag associated with exponential moving averages by adjusting the price series used for the calculation. This allows for increased responsiveness to market movements.

  • Added 3 dashboards (enable in parameter), it's for having your current trade visible on chart with all essential information.

    -The symbol of stock.
    -The price enter.
    -The stop lost price.
    -The take profit price.
    -If the trade is long or short.

    All of these information are editable on setting, here an example.

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.

Disclaimer

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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