# EMA 9/13/18/25 + Bollinger Band

The indicator combines two components: Exponential Moving Averages (EMAs) and Bollinger Bands.

Exponential Moving Averages (EMAs): The indicator calculates four EMAs with different periods: 9, 13, 18, and 25. An Exponential Moving Average is a type of moving average that places a greater weight and significance on the most recent data points. As the name suggests, it's an average of the asset's price over a certain period, with recent prices given more weight in the calculation, making it more responsive to recent price changes.

Bollinger Bands: Bollinger Bands consist of a simple moving average (the basis) and two standard deviations plotted away from it. The standard deviations are multiplied by a factor (usually 2) to determine the distance from the basis. These bands dynamically adjust themselves based on recent price movements. The upper band represents the highest price level reached in the given period, while the lower band represents the lowest price level.

Combining these components provides traders with insights into both trend direction and volatility. The EMAs help identify trends by smoothing out price data, while the Bollinger Bands offer insights into volatility and potential price reversal points. Traders often use the crossovers of EMAs and interactions with Bollinger Bands to make trading decisions. For example, when the price touches the upper Bollinger Band, it may indicate overbought conditions, while touching the lower band may suggest oversold conditions. Additionally, crossovers of EMAs (such as the shorter-term EMA crossing above or below the longer-term EMA) may signal changes in trend direction.

This script serves as a trend-following indicator by combining Bollinger Bands with Exponential Moving Averages (EMA). Here's a detailed explanation of how it works:

Calculating EMAs (Exponential Moving Averages):

The script computes four EMAs with different periods: 9, 13, 18, and 25. These EMAs are represented by the red, orange, yellow, and green lines respectively on the chart.
Calculating Bollinger Bands:

Users can specify the length of the Bollinger Bands and the type of moving average to use (SMA, EMA, etc.).
The script calculates the moving average (basis) using the 'ma' function, which accepts the specified moving average type and length.
It then calculates the standard deviation (dev) by multiplying the standard deviation of the source by the specified multiple (mult).
The upper Bollinger Band (upper) and lower Bollinger Band (lower) are calculated by adding and subtracting the standard deviation of the moving average from the source.
The Bollinger Bands are plotted on the chart along with the basis line, and the space between the upper and lower bands is filled.
Customizable Parameters:

Users can adjust the length of the Bollinger Bands, the type of moving average used, and the multiple of the standard deviation.
They can also specify an offset to adjust the position of the Bollinger Bands on the chart.
In summary, this script allows visualization of EMAs to identify short, medium, and long-term trends, along with Bollinger Bands to assess price volatility and overbought or oversold levels. This combination can assist traders in making informed trading decisions by identifying potential entry and exit points in the market.

This script serves as a trend-following indicator by combining Bollinger Bands with Exponential Moving Averages (EMA). Here's a detailed explanation of how it works:

Calculating EMAs (Exponential Moving Averages):

The script computes four EMAs with different periods: 9, 13, 18, and 25. These EMAs are represented by the red, orange, yellow, and green lines respectively on the chart.
Calculating Bollinger Bands:

Users can specify the length of the Bollinger Bands and the type of moving average to use (SMA, EMA, etc.).
The script calculates the moving average (basis) using the 'ma' function, which accepts the specified moving average type and length.
It then calculates the standard deviation (dev) by multiplying the standard deviation of the source by the specified multiple (mult).
The upper Bollinger Band (upper) and lower Bollinger Band (lower) are calculated by adding and subtracting the standard deviation of the moving average from the source.
The Bollinger Bands are plotted on the chart along with the basis line, and the space between the upper and lower bands is filled.
Customizable Parameters:

Users can adjust the length of the Bollinger Bands, the type of moving average used, and the multiple of the standard deviation.
They can also specify an offset to adjust the position of the Bollinger Bands on the chart.
In summary, this script allows visualization of EMAs to identify short, medium, and long-term trends, along with Bollinger Bands to assess price volatility and overbought or oversold levels. This combination can assist traders in making informed trading decisions by identifying potential entry and exit points in the market.

Color Change + Graph that Represents the Indicator Better