Three EMA and Stochastic RSI Signals with TP and SL Alerts

The Three EMA and Stochastic RSI Signals tool is a trend-following system designed to identify momentum-based entries within established trends by combining multiple moving average filters with oscillator-based triggers. It helps traders visualize trend alignment and potential reversal points while providing automated exit targets.

Usage

The tool generates buy and sell signals based on the confluence of three Exponential Moving Averages (EMAs), Stochastic RSI crossovers, and Weiss Wave Volume trend direction.

• Long Signals: Occur when the fast EMA is above the medium EMA, which is above the slow EMA (bullish stack), the Stochastic RSI K-line crosses over the D-line, and the price is currently in a bullish Weiss Wave Volume trend.
• Short Signals: Occur when the fast EMA is below the medium EMA, which is below the slow EMA (bearish stack), the Stochastic RSI K-line crosses under the D-line, and the price is in a bearish Weiss Wave Volume trend.

The indicator also automatically calculates and plots Take Profit (TP) and Stop Loss (SL) levels based on the Average True Range (ATR) to assist with risk management.

Details

The script uses a hierarchical trend structure:

• Trend Filter: Three EMAs (defaults: 8, 14, 50) ensure the trader is only taking signals in the direction of the primary and secondary trends.
• Momentum Trigger: The Stochastic RSI provides the timing for entries within the trend.
• Volume Confirmation: Weiss Wave Volume logic is integrated to confirm that market participation supports the current price direction.
• Exit Logic: Once a signal is triggered, dynamic exit lines are drawn based on a multiplier of the ATR. The script tracks these positions and marks "Win" (flag) or "Lose" (X) icons when price touches these levels.

Settings

EMA & ATR

• Slow/Medium/Fast EMA: Sets the length for the three moving averages used to determine trend alignment.
• ATR Size for Stop & TP Calc: The lookback period used for the ATR calculation.
• Stop Level (ATR Multiplier): Defines the distance from the entry price for the stop loss.
• Take Profit Level (ATR Multiplier): Defines the distance from the entry price for the take profit.

Weiss Wave Volume

• Renko Assignment Method: Choose between ATR, Traditional, or Part of Price to define the "bricks" used for volume trend calculation.
• ATR Periods: The lookback for the ATR-based volume calculation.
• Price Source: Determines which price data (Close, High/Low, etc.) is used for the wave calculation.

Stochastic RSI

• K/D Smoothing: Sets the smoothness for the Stochastic lines.
• RSI/Stochastic Length: Defines the lookback periods for the internal RSI and Stochastic calculations.

FAQ

How do I use the alerts provided by this script?

You can set alerts for Buy and Sell signals, as well as for when price reaches your Take Profit or Stop Loss levels, allowing for automated trade management via webhooks.

What do the different shapes on the chart mean?

Triangles represent entry signals, flags represent successful take-profit hits, and crosses represent stop-loss hits.

How can I access the Three EMA and Stochastic RSI Signals?

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