Dual EMA Proportion Variance | JeffreyTimmermans

il y a 4 jours

Dual EMA Proportion Variance

The "Dual EMA Proportion Variance" Indicator provides a robust way to analyze price trends, volatility, and momentum using dual EMA calculations combined with percentile-based thresholds. This approach enables traders to identify significant bullish and bearish trends while incorporating smoothing and tailoring options for better adaptability.

Key Features

Dual EMA with Proportion Variance

• DEMA Calculation: Computes the Dual Exponential Moving Average (DEMA) based on a user-defined length and source.
  
• Proportion Thresholds: Uses percentile-based thresholds (e.g., 60/45, 60/40, 55/45, or 55/40) to determine upper and lower bounds for trend detection. Percentile thresholds help identify key levels of market behavior based on historical data.
  

Momentum and Volatility Analysis

• Momentum Calculation: Computes momentum based on proximity to percentile levels, smoothed using a simple moving average (SMA) if enabled.
  
• Volatility Incorporation: Uses the standard deviation (SD) of the lower percentile (PerDown) to define additional levels of significance.
  

Smoothing and Trend Calculation

• Smoothing Options: Enables optional smoothing for momentum and trend values, helping reduce noise.
  
• EMA Confluence: Adds an additional EMA overlay to enhance the trend confirmation process.
  

Customizable Visuals

• Background Coloring: Dynamically changes the background color based on trend direction (bullish or bearish).
  
• Momentum Plotting: Displays smoothed momentum and EMA confluence lines on the chart, with clear visual differentiation.
  

Alerts

• Bullish Signal: Triggers when the trend transitions from neutral or bearish to bullish.
  
• Bearish Signal: Triggers when the trend transitions from neutral or bullish to bearish.
  

Inputs Overview

DEMA Inputs

• Length (DemaLen): Defines the length of the Dual EMA calculation.
  
• Source (DemaSrc): Allows selection of price data (e.g., high, low, close) for the DEMA computation.
  

Proportion Settings

• Proportion Length (PerLen): Defines the lookback period for percentile calculations.
  
• Proportion Type (pertype): Choose from predefined combinations (e.g., 60/45, 60/40) to customize thresholds.
  

Smoothing Options

• Enable Smoothing (UseSmoothing): Toggle to enable or disable smoothing.
  
• Smoothing Length (SmoothingLen): Specifies the lookback period for smoothing.
  

Standard Deviation

• Length (SDlen): Length of the lookback period used to calculate the standard deviation.
  

Tailoring

• Bullish/Bearish Colors (ColUp/ColDown): Customizable colors for bullish and bearish trends.
  
• Background Colors (ShowBGCol): Toggle to enable or disable background coloring.
  
• Momentum Plot (PlotMomentum): Toggle to show or hide the momentum plot.
  

EMA Confluence

• Enable Extra EMA (IncludeEma): Adds an additional EMA layer for trend confirmation.
  
• Length (EmaLen): Defines the length of the EMA.
  

Indicator Behavior

Trend Detection

• Bullish Trend: When the smoothed momentum (smoothedPT) is above zero and higher than the EMA (if enabled).
  
• Bearish Trend: When the smoothed momentum is below zero and lower than the EMA (if enabled).
  

Signal Generation

• Bullish Signal: Triggered on a crossover of smoothedTrend from negative to positive.
  
• Bearish Signal: Triggered on a crossunder of smoothedTrend from positive to negative.
  

Customizations

• Percentile Adjustments: Choose from various proportion thresholds to suit specific market conditions.
  
• Smoothing Options: Fine-tune the level of noise reduction by adjusting smoothing parameters.
  
• Visual Tailoring: Customize chart visuals, including colors, momentum plots, and background highlights.
  
• EMA Inclusion: Optionally enable the extra EMA for more conservative trend confirmation.
  

Use Cases

• Momentum Trading: Identify bullish or bearish momentum shifts based on percentile levels.
  
• Volatility Assessment: Incorporate standard deviation levels to evaluate price volatility.
  
• Trend Following: Align trades with dominant market trends using percentile thresholds and EMA confirmation.
  
• Alerts for Automation: Set alerts for real-time notifications of potential trade opportunities.
  

This indicator provides flexibility and precision, making it suitable for a variety of trading styles, including trend following, swing trading, and momentum-based strategies.

This script is inspired by "Patito_1". However, it is more advanced and includes additional features and options.

-Jeffrey

il y a 3 jours

Notes de version

Added dynamic label for bullish or bearish trend.