Lucky13ema

The Lucky13ema indicator provides a filtered momentum scalping framework designed to identify high-probability price breaks above or below the 13-period Exponential Moving Average (EMA). By combining price action with volume confirmation and trend filters, the tool aims to reduce market noise and capture clean momentum shifts on lower timeframes.

Usage

The Usage section describes how the script can be used, particularly on 1-minute charts of liquid assets like SPY, QQQ, or major equities during regular market hours.

The primary signals are generated when price crosses the 13 EMA:

• Long Entry: Occurs when the first green candle closes above the 13 EMA after having been below it, provided filters are met.
• Short Entry: Occurs when the first red candle closes below the 13 EMA after having been above it, provided filters are met.

Users can toggle the triple filter system to refine signals. When enabled, signals only trigger if volume exceeds a 20-period Simple Moving Average multiplied by a user-defined threshold, and if price is aligned with the Volume Weighted Average Price (VWAP).

Details

The script executes logic based on EMA crossovers combined with multi-factor confirmation. The core components include:

• Volume Filter: Requires a volume spike (default 1.2x of the 20 SMA) to confirm the conviction behind a move, helping to avoid "fakeouts" during low liquidity.
• VWAP Alignment: Filters long entries to only occur when price is above the VWAP and short entries when price is below the VWAP, ensuring the trade aligns with the intraday value area.
• Dynamic Exits: The script includes built-in strategy logic for percentage-based Take Profits and Stop Losses, as well as a Trailing Stop mechanism to capture extended moves.

Settings

• Use Filters: Master toggle to enable or disable the volume and VWAP confirmation requirements.
• Volume Multiplier: Sets the threshold for volume conviction (e.g., 1.2 requires volume to be 20% higher than the average).
• EMA Length: Determines the lookback period for the core Exponential Moving Average (defaulted to 13).
• Profit Target %: The percentage gain required to trigger a take profit exit.
• Stop Loss %: The percentage loss allowed before an exit is triggered.
• Use Trailing Stop: Enables a dynamic exit that follows price at a specified distance.
• Trail Offset (points): Defines the distance in points the trailing stop maintains from the price peak.
• Require VWAP Cross for Entries: An optional strict filter that requires price to specifically cross the VWAP at the same time as the EMA cross, rather than just being on the correct side of it.

FAQ

How do I interpret the BUY/SELL labels on the chart?
The labels indicate that price has crossed the 13 EMA with the required volume and trend filters active. A "BUY" label appears under a green candle closing above the EMA, while a "SELL" label appears above a red candle closing below it.

Can this indicator be used on higher timeframes?
While optimized for 1-minute momentum scalping, the logic can be applied to higher timeframes; however, users should adjust the Volume Multiplier and Profit/Stop settings to account for increased volatility and different price structures.

How do I access Lucky13ema?
You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.