DW-3 EMA Signal Line

3 kwi 2019

When the EMA is Green the Near EMA is above the Far EMA
When the EMA is Red the EMA Far is above the EMA Near
The color changes when the EMA Near and EMA Far cross
The single line EMA is the EMA Signal line
The EMA Signal line can be set at any look back period.
Changing the EMA Signal will not change when the EMA Near and EMA Far cross, or when the color of the EMA Signal changes
Changing the Look Back Period of the EMA Signal will change how near or far it is from current price
You can change the look back period of any of the EMAs

What this does for you.....

This allows you to implement an EMA Cross while only displaying 1 EMA on the chart.
This means less clutter and allows you to adjust your "warning track" for exit rules.
In other words your EMA for your exit rule does not have to be one of the EMAs crossing.
You can tighten your exit rule EMA closer or give it more room without effecting the cross parameter.

Notice that in these images the point at which the EMA changes color (the crossover) does not change
but the proximity to current price of the EMA Signal line does.





//version=3
study("DW-3 EMA Signal Line",overlay=true)
//SMAs
// Open Source
//======================================================


EMA_Near = input(defval=8, type=integer)
EMA_Signal = input(defval=14, type=integer)
EMA_Far = input(defval=21, type=integer)

EMAblue = sma(close,EMA_Near)
EMAred = sma(close,EMA_Far)

//color = SMAblue > SMAred ? #6DBEE5 : red
color = EMAblue > EMAred ? lime : red

plot(ema(close,EMA_Signal),color=color,linewidth=4)