OPEN-SOURCE SCRIPT
JCM_Madrid
This indicator provides dynamic bar coloring and buy/sell signals based on EMA relationships and price momentum. It allows traders to visually identify trend changes and potential trade opportunities directly on the chart.
Indicator Basics:
Name: The script is titled "JCM_Madrid".
Overlay: It overlays its calculations and outputs directly on the price chart.
User Inputs:
-Range: Defines the length of the EMA (Exponential Moving Average).
-Ref-1 and Ref-2: Set reference lengths for secondary EMAs used in the calculations.
-Source: The price data source for EMA calculations (e.g., close, open, high, low).
-Enable Buy/Sell: Boolean toggles to activate or deactivate buy and sell signals.
Calculations:
EMA Value: Computes the main EMA based on the source and Range.
CloseMA: The difference between the close price and the EMA.
SqzMA: The difference between a secondary EMA (Ref-1) and the main EMA.
RefMA: The difference between another secondary EMA (Ref-2) and the main EMA.
Bar Coloring:
Bars are colored based on the relationship between SqzMA and CloseMA:
Purple: When SqzMA > CloseMA.
Blue: When SqzMA < CloseMA.
Buy/Sell Signals:
A Buy Signal is generated when:
CloseMA crosses from below to above 0.
The close price is higher than the previous close.
Buy signals are enabled.
A Sell Signal is generated when:
CloseMA crosses from above to below 0.
The close price is lower than the previous close.
Sell signals are enabled.
Signals are displayed as labels on the chart:
"Buy": Green label below the candle.
"Sell": Yellow label below the candle
Indicator Basics:
Name: The script is titled "JCM_Madrid".
Overlay: It overlays its calculations and outputs directly on the price chart.
User Inputs:
-Range: Defines the length of the EMA (Exponential Moving Average).
-Ref-1 and Ref-2: Set reference lengths for secondary EMAs used in the calculations.
-Source: The price data source for EMA calculations (e.g., close, open, high, low).
-Enable Buy/Sell: Boolean toggles to activate or deactivate buy and sell signals.
Calculations:
EMA Value: Computes the main EMA based on the source and Range.
CloseMA: The difference between the close price and the EMA.
SqzMA: The difference between a secondary EMA (Ref-1) and the main EMA.
RefMA: The difference between another secondary EMA (Ref-2) and the main EMA.
Bar Coloring:
Bars are colored based on the relationship between SqzMA and CloseMA:
Purple: When SqzMA > CloseMA.
Blue: When SqzMA < CloseMA.
Buy/Sell Signals:
A Buy Signal is generated when:
CloseMA crosses from below to above 0.
The close price is higher than the previous close.
Buy signals are enabled.
A Sell Signal is generated when:
CloseMA crosses from above to below 0.
The close price is lower than the previous close.
Sell signals are enabled.
Signals are displayed as labels on the chart:
"Buy": Green label below the candle.
"Sell": Yellow label below the candle
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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Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.