EMA
Exponential Moving Average — an exponential moving average. Exponential Moving Average (EMA) assigns exponentially decreasing weight to historical data, making it more sensitive to recent prices compared to SMA. Widely used as a trend filter (200 EMA), a dynamic support/resistance level, and a component of other indicators (MACD, Bollinger Bands).
Formula:
k = 2 / (period + 1)EMA = Close * k + EMA_prev * (1 - k)Parameters
Section titled “Parameters”| Parameter | Type | Default | Range / Values |
|---|---|---|---|
Period | int | 200 | 1-200 |
Triggers
Section titled “Triggers”| Trigger | Direction | Condition | Description |
|---|---|---|---|
| Price crosses EMA up | 🟢 Buy | Price crossed EMA from below to above. | The closing price rose above the EMA. A classic bullish signal. |
| Price crosses EMA down | 🔴 Sell | Price crossed EMA from above to below. | The closing price fell below the EMA. A classic bearish signal — the start of a downward move relative to the moving average. |
| Price above EMA | 🟢 Buy | The closing price is above EMA (bullish context). | The closing price is above the exponential moving average on the current bar. This is not a crossover signal — it reflects the current state: a bullish context. |
| Price below EMA | 🔴 Sell | The closing price is below EMA (bearish context). | The closing price is below the exponential moving average. |
| Price crosses the line up | 🟢 Buy | Price crossed the indicator line from below to above. | The closing price crossed the indicator line from below to above. |
| Price crosses the line down | 🔴 Sell | Price crossed the indicator line from above to below. | The closing price crossed an arbitrary indicator line (MA, Supertrend, etc.) from above to below. |
| Price above the line | 🟢 Buy | The closing price is above the indicator line. | The closing price is above the indicator line (MA, Supertrend, etc.). Reflects the current position of price relative to the trend line. |
| Price below the line | 🔴 Sell | The closing price is below the indicator line. | The closing price is below the indicator line. |
