5EMA BollingerBand Nifty Stock Scanner

The 5EMA BollingerBand Nifty Stock Scanner indicator is a multi-asset screening tool designed to identify mean reversion setups across Nifty-50 stocks by combining the 5-period Exponential Moving Average (EMA) with Bollinger Band filters. It simplifies the process of tracking divergence and convergence setups, providing real-time trade levels including entry, stop loss, and targets directly on a dashboard.

Usage

The indicator scans a list of up to 40 user-defined symbols (pre-set to Nifty-50 constituents) and monitors them for specific price action relative to the 5-EMA.

• Long Setup: Triggered when the high of the previous candle is below the 5-EMA and the current price breaks above that high. If enabled, the close must also be within the Bollinger Bands.
• Short Setup: Triggered when the low of the previous candle is above the 5-EMA and the current price breaks below that low.
• Volume & Volatility: The scanner displays whether the current volume is above its 20-period average and if the Bollinger Band Width (volatility) is expanding or contracting.

Details

The script is built on the concept of mean reversion, specifically the "5-EMA Strategy." It operates on the empirical observation that price tends to return to its mean after significant divergence. To filter out high-volatility anomalies, Bollinger Bands are integrated to ensure trades are taken when price is within a standard deviation range. The scanner uses request.security to pull data from multiple tickers simultaneously into a centralized table, bypassing the need for manual watchlist rotation.

Settings

Screening Criteria

• Timeframe: The specific timeframe used for scanning (recommended: 30 minutes).
• Report Table Position: Adjusts where the dashboard appears on the chart.
• EMA Length: Sets the period for the mean average (default is 5).
• Consider Bollinger Band for Entry: Toggle to require price to be inside the BB for a valid signal.
• Bollinger Period/Standard Deviation: Configures the BB basis and width.
• Volume Average Period: The lookback period used to determine if current volume is "high."

Alert

• Add Alert: Enables or disables the internal alert logic.
• Custom Header for Alerts: Allows users to define a unique prefix for webhook or notification messages.

Symbols

• u001 - u040: Individual toggles to enable or disable specific tickers.
• s001 - s040: Input fields to define which symbols the scanner should monitor.

FAQ

How do I access 5EMA BollingerBand Nifty Stock Scanner?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Why is the 30-minute timeframe recommended?

The 30-minute timeframe is suggested to balance signal reliability with system performance; lower timeframes like the 5-minute can sometimes trigger memory limitations due to the high volume of security calls.

Can I monitor more than 40 stocks at once?

Due to TradingView platform limitations, a single script can only call up to 40 request.security functions. You can, however, change the symbols in the settings to monitor different assets.