Favorite Signals w/EMA Filter

The Favorite Signals w/EMA Filter indicator provides a comprehensive suite of price action signals filtered by moving averages or VWAP to identify high-probability trend reversals and entries. It combines classic technical patterns like TD Sequentials and RSI divergences with trend-following logic to assist traders in navigating market noise.

Usage

The script identifies specific price action patterns and subjects them to an optional EMA or VWAP filter. Users can choose to display signals as bar colors or as shapes above/below the price action.

Signal Categories:

• TD Sequentials: Identifies TD8 and TD9 exhaustion counts for potential trend climaxes.
• Candlestick Patterns: Detects Hammer, Shooting Star, and Bullish/Bearish Harami formations.
• RSI Divergence: Spots discrepancies between price movement and momentum to anticipate reversals.

Filtering Logic:

• EMA Filter (Longs): A potential long entry is identified when price is below the Fast EMA while the Medium EMA is above the Slow EMA. If price moves above the Fast EMA during this trend, it may signal a reversal or a time to tighten stops.
• EMA Filter (Shorts): A potential short entry occurs when price is above the Fast EMA while the Medium EMA is below the Slow EMA.
• VWAP Filter: Signals can be restricted to only trigger when price is outside the VWAP StDev bands (e.g., Longs only below the lower band).

Details

The indicator calculates three Exponential Moving Averages (Fast, Medium, Slow) to establish the primary trend direction and mean-reversion zones. For volatility-based filtering, it uses a Volume Weighted Average Price (VWAP) calculation with customizable anchor periods (Session, Week, Month, etc.) and standard deviation bands. The RSI Divergence logic looks for specific oversold/overbought conditions followed by price-momentum misalignment to confirm exhaustion.

Settings

Signals

• Long/Short Signals: Toggle switches for TD8, TD9, Hammer/Shooting Star, Harami patterns, and RSI Divergence.

Filter

• Signal Side: Choose to display Both, Long Only, or Short Only signals.
• Long/Short Filter: Select between Off, EMA, or VWAP filtering logic for each direction.

EMA Settings

• Show EMAs: Toggles the visibility of the three EMA lines.
• Fast/Med/Slow Length: Adjusts the lookback periods for the moving averages.

VWAP Settings

• Anchor Period: Determines the reset interval for VWAP (e.g., Session, Week, Year).
• VWAP Cloud St Dev: Sets the multiplier for the deviation bands used in filtering.

RSI Divergence Settings

• Overbought/Oversold: Defines the threshold levels for divergence detection.
• Max/Min Bars: Constraints for the distance between price peaks and RSI peaks.

FAQ

How do I access Favorite Signals w/EMA Filter?

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

Can I use this for day trading?

Yes, the script is versatile. For day trading, it is recommended to use the EMA settings for entry signals and VWAP (Session anchor) for identifying exit targets or major structural support/resistance.

Why did my alerts stop working after changing settings?

TradingView alerts are static snapshots of the script's state at the time of creation. If you modify any inputs (like EMA lengths or signal toggles), you must delete the old alert and create a new one to reflect the updated logic.