3 EMAs with Crossing Alerts & 2 SMAs

The 3 EMAs with Crossing Alerts & 2 SMAs indicator provides a comprehensive moving average suite designed to identify trend direction and entry signals through the interaction of multiple exponential and simple moving averages.

Usage

The indicator is primarily used to identify trend-following entries based on moving average crossovers filtered by a higher-period trendline.

• Long Signals: Occur when the EMA1 (Signal line) crosses above EMA2 (Baseline) while both are positioned above EMA3 (Trendline). These are marked with a green triangle below the price action.
• Short Signals: Occur when the EMA1 (Signal line) crosses below EMA2 (Baseline) while both are positioned below EMA3 (Trendline). These are marked with a red triangle above the price action.
• Trend Confirmation: The two additional SMAs can be used for secondary trend confirmation or to identify significant support and resistance levels (e.g., using a 200-period SMA for long-term trend bias).

The script includes built-in alert conditions for both Long and Short signals, making it compatible with automated trading bots or manual alert monitoring.

Details

The logic relies on a hierarchical moving average structure:

1. Signal Line (EMA1): The fastest EMA, reacting quickly to price changes.
2. Baseline (EMA2): Used to generate the primary crossover signal when met by EMA1.
3. Trendline (EMA3): Acts as a filter; signals are only valid if the crossover occurs on the correct side of this trendline to ensure the trade aligns with the broader market direction.

The inclusion of two Simple Moving Averages (SMAs) provides additional layers of technical analysis without interfering with the core EMA crossover logic.

Settings

• EMA1: Sets the period for the first Exponential Moving Average (default is 21).
• EMA2: Sets the period for the second Exponential Moving Average (default is 50).
• EMA3: Sets the period for the third Exponential Moving Average (default is 100).
• SMA1: Sets the period for the first Simple Moving Average (default is 10).
• SMA2: Sets the period for the second Simple Moving Average (default is 200).

FAQ

How do I access 3 EMAs with Crossing Alerts & 2 SMAs?

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

Can I change the types of moving averages?

The script is hardcoded to use three EMAs for the signal logic and two SMAs for additional context, though the periods for each are fully customizable in the settings menu.

What is the recommended setup for the alerts?

For the signals to function as intended, it is generally recommended that EMA1 has the smallest period, EMA2 has a medium period, and EMA3 has the largest period to properly filter the trend.