OPEN-SOURCE SCRIPT
MTF-Colored EMA Difference and Stochastic indicator

This indicator combines two popular technical analysis tools: the Exponential Moving Average (EMA) and the Stochastic Oscillator, with the added flexibility of analyzing them across multiple time frames. It visually represents the difference between two EMAs and the crossover signals from the Stochastic Oscillator, providing a comprehensive view of the market conditions.
Components:
EMA Difference Histogram:
EMA Calculation: The indicator calculates two EMAs (EMA1 and EMA2) for the selected time frame.
EMA Difference: The difference between EMA1 and EMA2 is plotted as a 4 coloured histogram.
Stochastic Oscillator:
Calculation: The %K and %D lines of the Stochastic Oscillator are calculated for the selected time frame.
Additional Confirmation via Colors:
Green: %K is above %D, indicating a bullish signal.
Red: %K is below %D, indicating a bearish signal.
Entry and Exit Strategies
Entry Strategy:
Bullish Entry:
Condition 1: The histogram is Dark green (indicating a strong upward trend).
Condition 2: The Stochastic colour is green (%K is above %D).
Bearish Entry:
Condition 1: The histogram is Dark Red (indicating a strong downward trend).
Condition 2: The Stochastic colour is red (%K is below %D).
Exit Strategy:
Bullish Exit:
Condition: The Stochastic colour turns red (%K crosses below %D).
Bearish Exit:
Condition: The Stochastic colour turns green (%K crosses above %D).
Additional Considerations:
Time Frame Selection: The chosen time frame for both the EMA and Stochastic calculations should align with the trader’s strategy (e.g., daily for swing trading, hourly for intraday trading).
Risk Management: Implement stop-loss orders to manage risk effectively. The stop-loss can be placed below the recent swing low for long positions and above the recent swing high for short positions.
Confirmation: Consider using this indicator in conjunction with other technical analysis tools to confirm signals and reduce the likelihood of false entries and exits.
Components:
EMA Difference Histogram:
EMA Calculation: The indicator calculates two EMAs (EMA1 and EMA2) for the selected time frame.
EMA Difference: The difference between EMA1 and EMA2 is plotted as a 4 coloured histogram.
Stochastic Oscillator:
Calculation: The %K and %D lines of the Stochastic Oscillator are calculated for the selected time frame.
Additional Confirmation via Colors:
Green: %K is above %D, indicating a bullish signal.
Red: %K is below %D, indicating a bearish signal.
Entry and Exit Strategies
Entry Strategy:
Bullish Entry:
Condition 1: The histogram is Dark green (indicating a strong upward trend).
Condition 2: The Stochastic colour is green (%K is above %D).
Bearish Entry:
Condition 1: The histogram is Dark Red (indicating a strong downward trend).
Condition 2: The Stochastic colour is red (%K is below %D).
Exit Strategy:
Bullish Exit:
Condition: The Stochastic colour turns red (%K crosses below %D).
Bearish Exit:
Condition: The Stochastic colour turns green (%K crosses above %D).
Additional Considerations:
Time Frame Selection: The chosen time frame for both the EMA and Stochastic calculations should align with the trader’s strategy (e.g., daily for swing trading, hourly for intraday trading).
Risk Management: Implement stop-loss orders to manage risk effectively. The stop-loss can be placed below the recent swing low for long positions and above the recent swing high for short positions.
Confirmation: Consider using this indicator in conjunction with other technical analysis tools to confirm signals and reduce the likelihood of false entries and exits.
开源脚本
本着TradingView的真正精神,此脚本的创建者将其开源,以便交易者可以查看和验证其功能。向作者致敬!虽然您可以免费使用它,但请记住,重新发布代码必须遵守我们的网站规则。
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。
开源脚本
本着TradingView的真正精神,此脚本的创建者将其开源,以便交易者可以查看和验证其功能。向作者致敬!虽然您可以免费使用它,但请记住,重新发布代码必须遵守我们的网站规则。
免责声明
这些信息和出版物并不意味着也不构成TradingView提供或认可的金融、投资、交易或其它类型的建议或背书。请在使用条款阅读更多信息。