Price Action and 3 EMAs Momentum plus Sessions Filter

The Price Action and 3 EMAs Momentum plus Sessions Filter indicator provides a comprehensive framework for identifying high-probability trend continuation setups by combining triple Exponential Moving Averages, historical price action extremes, and specific trading session filters.

Usage

The indicator is designed to identify momentum-based trade opportunities by filtering for specific price conditions during peak market volatility (London and New York sessions).

• Signal Identification: A "LookToBuy" or "LookToSell" triangle appears when both the 3 EMAs are in perfect alignment (Fast > Medium > Slow for longs) and the price has broken out of the recent 48-period high/low range while maintaining a higher-low/lower-high structure relative to a trailing 84-period window.
• Trade Entry: After a signal is detected, the script looks for a retracement. An entry triangle appears below the bar (for longs) or above the bar (for shorts) when the price pulls back to touch the Fast EMA, provided the structural breakout remains intact.
• Session Filtering: Background colors indicate different global sessions (Sydney, Tokyo, London, New York). The core signal logic is restricted to the London and New York crossover periods to ensure sufficient liquidity.
• Psychological Levels: Optional round and half-round levels (e.g., 1.1000 or 1.1050) can be enabled to identify potential areas of institutional interest or support/resistance.

Details

The script utilizes a dual-momentum approach:

1. EMA Momentum: Analyzes the relative positioning of three EMAs (12, 48, and 96 periods). On a 15-minute timeframe, these represent the 3-hour, 12-hour, and 24-hour trends respectively.
2. Price Action (PA) Momentum: Uses the Highest High and Lowest Low of specific lookback periods. For an upward momentum signal, the current close must be above the 48-period high, and that high must be greater than the 84-period high calculated from a 12-bar offset. This ensures the breakout is fresh and supported by a broader trend.

The entry logic is optimized for "buying the dip" within a strong trend, triggering only when the price retraces to the Fast EMA within a certain window after the initial momentum signal.

Settings

Session Settings

• Sydney/Tokyo/London/New York Session On: Toggles the background highlights for specific trading sessions.
• DST On: Adjusts the session highlighting for Daylight Savings Time.
• LDNNYK: Defines the specific time range allowed for signal generation.

EMA Settings

• Fast/Med/SlowEMA On: Toggles the visibility of the moving average lines.
• Fast/Med/SlowEMA Length: Sets the lookback periods for the three EMAs (default: 12, 48, 96).

Price Action Settings

• Highs/Lows On: Toggles the display of the 48-period price extremes used for the immediate signal.
• PrevHighs/PrevLows On: Toggles the display of the 84-period structural extremes used to confirm the trend.

Round Levels

• Half/Full Round Level On: Toggles horizontal lines at major psychological price points.
• Round Level Inputs (pips): Defines the spacing for psychological levels.
• Max distance (pips): Filters the round level display to only show lines near the current price.

FAQ

How do I use the signals from this indicator?

You should first look for the "Look" signal (top/bottom triangle), which indicates momentum alignment. Then, wait for the secondary "Entry" triangle which signifies a price retracement to the Fast EMA, offering a more optimal entry point.

Which timeframes and pairs are recommended?

While it can be used on various assets, the logic was originally optimized for EURUSD on the 15-minute timeframe during the London and New York sessions.

How can I access Price Action and 3 EMAs Momentum plus Sessions Filter?

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