This indicator is mostly to show some techniques in Pinescript rather than be useful for trading, however it does nicely identify trend and chop zones (sideways) on the 1-hour or 4-hour chart.
What it does:
- Has three EMAs at varying length and plots these on the chart
- Computes when the EMAs are in configuration ( short > Medium > long)
- Computes when EMAs are in configuration ( short < Medium < long)
- When the EMAs are crossed there is a chop zone (sideways)
- Colours the background of the chart as Green ( ), Red ( ) or Orange (sideways chop zone)
- Also predicts the value of the three EMA's three points into the future using (showed as dots on the chart)
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 a publication is governed by House Rules. You can favorite it to use it on a chart.