This is an enhanced version of a double EMA indicator, which can be combined with ADX/DMI and SAR to filter the trading signals.
The ADX/DMI uses the standard 14 periods, and the SAR uses the standard settings of 0.02/0.2/0.02.
The signals are basically the same, but they are filtered afterwards based on ADX/DMI and SAR signals.
- When the fast EMA crosses the slow EMA
- When the price penetrades both EMA’s
- When the Donchian becomes Strong (if enabled)
- When the DMI and SAR become Strong (if enabled)
|Strong Long||When the Fast EMA is above the Slow EMA and rising, or when a candle breaks above both EMA’s (in any order) from below|
|Weak Long||When the Fast EMA is above the Slow EMA and falling, while price is still above the Slow EMA|
|None||When none of the other conditions are valid (this does happen, for instance when the Fast is still above Slow, but a bullish bar is below Slow)|
|Weak Short||When the Fast EMA is below the Slow EMA and rising, while price is still below the Slow EMA|
|Strong Short||When the Fast EMA is below the Slow EMA and falling, or when a candle breaks below both EMA’s (in any order) from above|
|Alert at candle break||If checked there will be an extra alert send when price breaks (back) over the Fast EMA (bounce back from a pullback)|
|Fast||The period for the Fast EMA|
|Slow||The period for the Slow EMA|
|Use Donchian mid||You can enter a Donchian period here, which then will plot markers when the Fast EMA crosses the Donchian Midline.|
This is a visual clue only and doesn’t change the signals
|Use SAR and DMI||If checked the signals are filtered afterwards based on ADX/DMI and SAR signals.|
Also the candles will be colored cyan when the ADX is falling or flat.
|Plots||The styles of the indicator’s plots|
|Candle Break Color||The background color for bars on the chart that break back over the Fast EMA.|
The color is only applied when the checkbox for ‘Alert at candle break’ is ticked.
|Show background||If checked the background will be colored green or red dependant on the signals|