OPEN-SOURCE SCRIPT
EMA Crossover Strategy with Stop Loss
EMA Crossover Strategy with Stop Loss
### Explanation:
1. *Heikin-Ashi Candles*: The script uses Heikin-Ashi candles for the 1-hour timeframe.
2. *EMAs*: It calculates the 9-period EMA and the 26-period EMA.
3. *Entry Conditions*: A trade is entered when the 9 EMA crosses above the 26 EMA (long) or below the 26 EMA (short).
4. *Stop Loss*: The stop loss is calculated as the highest price of the last 8-10 candles for long trades and the lowest price for short trades.
5. *Exit Conditions*: The trade is exited if the opposite crossover occurs or if the stop loss level is hit.
6. *Labels*: Labels are added to the chart to indicate entry and exit points.
### Explanation:
1. *Heikin-Ashi Candles*: The script uses Heikin-Ashi candles for the 1-hour timeframe.
2. *EMAs*: It calculates the 9-period EMA and the 26-period EMA.
3. *Entry Conditions*: A trade is entered when the 9 EMA crosses above the 26 EMA (long) or below the 26 EMA (short).
4. *Stop Loss*: The stop loss is calculated as the highest price of the last 8-10 candles for long trades and the lowest price for short trades.
5. *Exit Conditions*: The trade is exited if the opposite crossover occurs or if the stop loss level is hit.
6. *Labels*: Labels are added to the chart to indicate entry and exit points.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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