OPEN-SOURCE SCRIPT
Four EMAs - Rejection Zone Indicator
This Indicator is an enhancement of The Rejection Zone Indicator by Stratfather
The Rejection Zone Indicator can be further enhanced by adding the 200 period Exponential Moving Averages (EMAs) to aid in trend confirmation and timing. This modified version provides a clearer view of entry points in both trending and counter-trend scenarios. With 200 EMA as trend filters, when the 20 EMA is above the 50 EMA, and they are above the 200 EMA, the cloud will turn green, indicating a strong bullish trend. When price pulls back into this green cloud, it serves as a support zone, signaling potential long trade opportunities.
Conversely, when the 20 EMA is below the 50 EMA and they are below the 200 EMA, the cloud will turn red, marking a bearish trend. In this case, price pulling back into the red cloud serves as a resistance zone, suggesting potential short trade opportunities.
The Rejection Zone Indicator can be further enhanced by adding the 200 period Exponential Moving Averages (EMAs) to aid in trend confirmation and timing. This modified version provides a clearer view of entry points in both trending and counter-trend scenarios. With 200 EMA as trend filters, when the 20 EMA is above the 50 EMA, and they are above the 200 EMA, the cloud will turn green, indicating a strong bullish trend. When price pulls back into this green cloud, it serves as a support zone, signaling potential long trade opportunities.
Conversely, when the 20 EMA is below the 50 EMA and they are below the 200 EMA, the cloud will turn red, marking a bearish trend. In this case, price pulling back into the red cloud serves as a resistance zone, suggesting potential short trade opportunities.
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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