Day‑trade Long/Short Signals

The Day‑trade Long/Short Signals indicator is a trend-following tool designed to identify short-term momentum shifts by combining Exponential Moving Averages (EMA) and MACD filters.

Usage

The indicator is primarily used to identify entry points for intraday trading. Users look for visual labels on the chart to determine market direction:

• Long Entry: Occurs when the Fast EMA (5) crosses above the Mid EMA (8) while the MACD line is positioned above the signal line.
• Short Entry: Occurs when the Fast EMA (5) crosses below the Mid EMA (8) while the MACD line is positioned below the signal line.

Additionally, the indicator plots stop-loss reference points using ATR-based calculations (circles), which appear immediately upon a signal to help manage risk. The Slow EMA (13) is provided as an additional trend filter or trailing reference.

Details

The script utilizes a dual-confirmation logic to reduce "sawtooth" or false signals common in moving average crossovers. By requiring the MACD trend to align with the EMA crossover, it ensures that momentum is moving in the direction of the trade. The inclusion of the Average True Range (ATR) allows for dynamic stop-loss levels that adjust based on current market volatility, rather than static price points.

Settings

• Fast EMA: Sets the period for the fastest moving average (default 5).
• Mid EMA: Sets the period for the middle moving average used for crossover detection (default 8).
• Slow EMA: Sets the period for the long-term trend reference (default 13).
• MACD Fast EMA: The fast period for the MACD calculation.
• MACD Slow EMA: The slow period for the MACD calculation.
• MACD Signal EMA: The smoothing period for the MACD signal line.
• ATR Length: The lookback period used to calculate market volatility for stop levels.
• ATR Multiplier: Determines the distance of the stop-loss circles from the price based on the ATR value.

FAQ

How do I use the ATR circles?

The circles represent a suggested stop-loss level based on volatility at the time of the signal. Green circles correspond to Long signals, while red circles correspond to Short signals.

Can I change the sensitivity of the signals?

Yes, you can adjust the Fast and Mid EMA lengths in the settings. Smaller values will produce more frequent signals, while larger values will filter out noise at the cost of later entries.

How can I access Day‑trade Long/Short Signals?

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