MACD + EMA System with Alerts

The MACD + EMA System with Alerts indicator provides a trend-following momentum strategy by combining the Moving Average Convergence Divergence (MACD) with an Exponential Moving Average (EMA) filter to identify high-probability trade entries.

Usage

The indicator generates buy and sell signals based on the intersection of trend and momentum filters.

Long Signals A long entry is triggered when:

• The MACD line crosses above the Signal line.
• The crossover occurs while the MACD signal is below the zero (0) line, indicating potential momentum reversal from an oversold state.
• The price is trading above the EMA 200, ensuring the trade is aligned with the long-term uptrend.

Short Signals A short entry is triggered when:

• The MACD line crosses below the Signal line.
• The crossover occurs while the MACD signal is above the zero (0) line, indicating potential momentum reversal from an overbought state.
• The price is trading below the EMA 200, ensuring the trade is aligned with the long-term downtrend.

Details

The script enhances the standard MACD strategy by introducing a trend filter (EMA 200). Standard MACD crossovers in isolation can frequently produce false signals in sideways or counter-trend markets. By requiring the price to be on a specific side of the EMA, the system filters out signals that oppose the primary market direction. The inclusion of the "below/above zero" rule further ensures that entries are taken when momentum is shifting favorably within that primary trend.

Settings

• EMA Period: Sets the length of the Exponential Moving Average used for trend filtering (default is 200).
• Fast Length: Sets the period for the faster EMA in the MACD calculation.
• Slow Length: Sets the period for the slower EMA in the MACD calculation.
• Signal Length: Sets the smoothing period for the MACD Signal line.

FAQ

How do I access the MACD + EMA System with Alerts? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.

Can I change the trend filter length? Yes, you can adjust the EMA Period in the settings to better suit different timeframes or trading styles, such as using a 50 EMA for a more aggressive trend filter.

Does this indicator include alerts? Yes, the script includes alert conditions for Buy and Sell signals, as well as standard MACD crossovers/crossunders, allowing for automated notifications.