Call and Put signals

The Call and Put signals indicator provides a comprehensive trend-following system that identifies potential market entries and exits using a combination of dual moving averages, Heikin Ashi trend filtering, and momentum oscillators. This tool aims to help traders identify trend reversals and exhaustion points by analyzing the relationship between price action and dynamic value zones.

Usage

The script generates primary entry signals labeled as CALL and PUT, along with secondary TP (Take Profit) exit cues.

• CALL Signal (Buy): Appears when the average price is above both the Fast and Slow EMAs while the Slow EMA is below the Fast EMA, confirmed by a crossover. This indicates the price has recovered from a value zone with renewed strength.
• PUT Signal (Sell): Appears when the average price is below both EMAs and the Slow EMA is above the Fast EMA, confirmed by a crossover. This suggests the price is trading at elevated levels and showing signs of weakness.
• Take Profit Signals: These are generated based on the SMI oscillator. A TP Buy signal occurs when the SMI crosses below 0 (indicating weakening bullish momentum), while a TP Sell signal occurs when the SMI crosses above 0 (indicating weakening bearish momentum).
• Visual Confirmation: The background color shifts based on secondary EMA crossovers to provide additional trend context, while Heikin Ashi candles are used to filter out price noise.

Details

The indicator relies on several technical layers to ensure signal quality:

• Dual EMA Structure: Uses two exponential moving averages to define the core trend and identify value zones.
• Heikin Ashi Integration: Smooths out volatile price action to ensure the underlying trend is consistent with the generated signals.
• Smoothed Stochastic Momentum Index (SMI): A double-smoothed version of the Stochastic oscillator that is highly sensitive to momentum shifts, used specifically for identifying exit opportunities.
• Average Price Action: The logic compares current EMA positions against a calculated average price (Open + High + Low + Close / 4) to ensure entries occur at favorable price levels.

Settings

Main Parameters

• 1st EMA (Fast): Sets the period for the fast exponential moving average used in the signal logic.
• 2nd EMA (Slow): Sets the period for the slow exponential moving average used in the signal logic.
• %K Length: The period for the SMI indicator's relative range calculation.
• %D Length: The smoothing period for the SMI calculation.
• EMA Length: The period for the EMA applied to the SMI line.

FAQ

How do I access Call and Put signals?

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

What timeframes are best for this indicator?

The indicator is versatile; it can be used for intraday scalping on 5m to 15m charts, swing trading on 1h to 4h charts, or positional trading on daily timeframes.

How do I set up alerts?

The script includes built-in alert conditions for CALL, PUT, and TP signals. You can create a TradingView alert by selecting the indicator in the Alert menu and choosing the desired signal condition.