The indicator is for a pullback trader. A trader that waits for a trend to develop then enters on a pullback.
The indicator defines an uptrend start: as the 13 crossing above the 26 . It defines a downtrend start: as the 13 crossing below the 26 .
The pullback in an uptrend: 13 is above the 26 . Elders-Force-Index is below the zero line. Price low has crossed below the 13 (one can also say price closes below the 13 if they so wish).
The pullback in a downtrend: 13 is below the 26 . Elders-Force-Index is above the zero line. Price high has also crossed above the 13 .
Please note that the pullback signals do not necessitate an automatic buy or sell (the instrument can be still pulling back deeper and not ready to resume it's trend.) One should place orders above (long) or below (short) bars with the pullback signals. Do so on signals until orders are filled.
Although the indicator is meant for pullbacks one can make an aggressive entry at the onset of a crossover of ema's.
For clarity background colors has been added to the indicator.
works well on daily time frame. Also look at intraday (5) minute time frame on trending stocks (news, , , etc.)
Keep It Simple.
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.