EREMA Signals

The EREMA Signals indicator provides precise on-chart buy and sell signals based on the Ehlers Reverse EMA calculation, designed to identify momentum shifts and trend reversals without the need for additional oscillator panels.

Usage

The Usage section describes how the script can be used to identify entry and exit points directly on the price chart. Users can select from three distinct signal generation methods to suit their trading style:

• Zero Cross: Signals are triggered when the internal Ehlers Reverse EMA value crosses above or below the zero line, indicating a broad shift in trend direction.
• MA Cross: Signals occur when the Reverse EMA crosses its own Moving Average, highlighting shorter-term momentum changes.
• Zero & MA Cross: This method acts as a strict filter, requiring both a zero line cross and a Moving Average cross to generate a signal, resulting in fewer but potentially higher-probability setups.

Signals are visualized as green upward triangles (bullish) and red downward triangles (bearish). These shapes are dynamically positioned using ATR-based offsets to ensure they do not obscure price action.

Details

This tool is based on John Ehlers' Reverse EMA concept, which aims to provide a zero-lag or reduced-lag representation of price momentum. Unlike traditional EMAs that follow price, the Reverse EMA uses a specific mathematical subtraction of higher-order exponential smoothing to create an oscillator-like value. This script implements that calculation internally and translates the resulting values into actionable on-chart signals.

Settings

Main Settings

• Alpha: Controls the smoothing factor of the calculation. Lower values result in smoother, longer-term signals, while higher values react faster to price changes.
• Max Bars: Limits the historical calculation to a specific number of bars to optimize performance.

Moving Average

• MA Type: Choose between SMA, EMA, WMA, or VWMA for the signal line calculation.
• MA Length: Sets the lookback period for the signal line used in "MA Cross" signal modes.

Signal Settings

• Signal Type: Selects the logic for generating triangles (Zero Cross, MA Cross, or Zero & MA Cross).
• Signal Size: Adjusts the visual size of the triangles on the chart (Small, Normal, Large).
• Enable Alerts: Toggle for enabling real-time notifications when a signal conditions are met.

FAQ

How do I access the EREMA Signals?

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

What is the best timeframe for this indicator?

While it can be used on any timeframe, higher timeframes like the 4H or Daily typically provide more reliable trend signals with less market noise.

Do I need the main Ehlers Reverse EMA indicator for this to work?

No, this indicator is self-contained and performs all necessary calculations internally to display signals on the price chart. However, it is often used alongside the oscillator version for visual confirmation.