Elder EMA, ATR & MACD Indicator, 5X Time Frame & Divergences

The Elder EMA, ATR & MACD Indicator, 5X Time Frame & Divergences tool is a multi-timeframe analysis suite based on Dr. Alexander Elder's "Triple Screen" trading system, designed to identify trends and entry points by analyzing market momentum at a scale five times higher than the current chart.

Usage

The script is used to identify market "tides" and "waves" by combining several technical components:

• Higher Time Frame (HTF) Momentum: The indicator automatically calculates MACD and EMA values from a timeframe five times (5x) higher than your current chart. This helps in identifying the primary trend direction without needing to switch tabs.
• Impulse System: Bullish and Bearish impulse shapes (triangles) appear on the chart when the price action, HTF MACD histogram, and HTF EMA are all aligned.
• Market Seasons: The circles at the top of the chart represent MACD "Seasons" (Winter, Spring, Summer, Fall), providing a visual representation of momentum acceleration and deceleration in the higher timeframe.
• Volatility Bands: The indicator plots ATR-based bands around the EMA, which act as dynamic overbought/oversold levels or profit targets.
• Support/Resistance: A Stop Loss (SL) level is plotted based on the relationship between the EMA and the ATR, providing a structural level for risk management.

Details

The script utilizes request.security to fetch data from a timeframe calculated dynamically as 5x the current interval. It calculates the MACD Histogram and two EMAs (Fast and Slow) on this higher timeframe to filter out "noise" found on lower timeframes.

The "Seasons" logic is defined as:

• Summer: MACD Histogram is positive and rising.
• Fall: MACD Histogram is positive but falling.
• Winter: MACD Histogram is negative and falling.
• Spring: MACD Histogram is negative but rising.

Settings

MACD & EMA Settings

• EMA Fast Length: Sets the period for the fast Exponential Moving Average.
• EMA Slow Length: Sets the period for the slow Exponential Moving Average.
• Source: The price data used for calculations (default is "Close").
• Simple MA (Oscillator): If enabled, uses a Simple Moving Average instead of an EMA for the MACD calculation.
• Simple MA (Signal Line): If enabled, uses an SMA for the MACD signal line smoothing.

MACD Parameters

• MACD Fast Length: The period for the short-term MA in the MACD calculation.
• MACD Slow Length: The period for the long-term MA in the MACD calculation.
• MACD Signal Smoothing: The period used to smooth the MACD line to create the signal line.

General

• Offset: Shifts the plots forward or backward in time.
• Financial Period: Used for specific financial data calculations (FQ for Quarterly, FY for Yearly).

FAQ

How do I interpret the triangle shapes?

The triangles represent the "Impulse System." A green triangle up indicates that momentum is rising across the trend, the MACD histogram, and the price. A red triangle down indicates synchronized bearish momentum.

What are the circles at the top of the chart?

These represent the four seasons of the MACD on the 5x timeframe, helping you visualize whether the higher-order trend is accelerating or losing steam.

How can I access this indicator?

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