F-GEM Trend & Momentum System

The F-GEM Trend & Momentum System indicator identifies high-probability trend continuation setups by combining directional filtering, momentum pullbacks, and price action confirmation. It serves as an algorithmic framework to detect entries aligned with the "Line of Least Resistance" by requiring price to break key pivotal structures following a retest of moving average levels.

Usage

The system is designed to identify entries in trending markets while filtering out noise during consolidation. Users can interpret the signals based on the following components:

• Trend Identification: The white line (100-period EMA) acts as the macro filter. Long signals are only considered when the price and the 20-period EMA are above a rising 100 EMA. Short signals are only considered when the price and the 20-period EMA are below a falling 100 EMA.
• The Pullback Zone: The blue line (20-period EMA) represents the momentum trigger. The system looks for the price to return to or "retest" this zone before a signal can be generated, ensuring the entry occurs after a temporary correction.
• Confirmation Signals: A green triangle below a bar indicates a bullish entry, while a red triangle above a bar indicates a bearish entry. These appear when the trend is confirmed, a pullback to the 20 EMA has occurred, a specific reversal candle (Engulfing or Pin Bar) has formed, and the price has closed beyond the most recent algorithmic Pivot High or Low.

Traders typically use these signals in trending environments and avoid them when the 100 EMA is flat or the 20 EMA is crossing it frequently, which indicates a range-bound market.

Details

The script execution follows a strict multi-step checklist to ensure technical alignment:

1. Directional Filter: Uses the slope and relative position of the 100 EMA to establish the "Line of Least Resistance."
2. Momentum Check: Requires the 20 EMA to be positioned correctly relative to the 100 EMA and the price to have interacted with the 20 EMA within the last three bars.
3. Candlestick Patterns: Specifically looks for Bullish/Bearish Engulfing or Pin Bar formations. For example, a Bullish Pin Bar is identified when the lower wick is at least twice the size of the candle body.
4. Structural Break: The script tracks local Pivot Highs and Lows (calculated using a 5-bar left/right strength). A signal is only triggered if the signal candle closes above the last Pivot High (for longs) or below the last Pivot Low (for shorts), proving that the market has regained strength.

Settings

• EMA 100 (Kierunek): Plots the 100-period Exponential Moving Average used for macro trend filtering.
• EMA 20 (Momentum): Plots the 20-period Exponential Moving Average used to identify momentum and pullback zones.
• Wejście LONG: Controls the visual appearance (color, shape, and size) of the bullish trend continuation signals.
• Wejście SHORT: Controls the visual appearance (color, shape, and size) of the bearish trend continuation signals.

FAQ

How do I know if the market is trending or ranging? The system indicates a trend when the 100 EMA (white line) is clearly sloping and the 20 EMA (blue line) remains on one side of it. If the 100 EMA is horizontal and the price is weaving through it, the market is likely consolidating.

What candle patterns does the system recognize? The script identifies Engulfing candles and Pin Bars (Hammers/Shooting Stars). These must occur near the 20 EMA and break the recent pivot structure to trigger a valid F-GEM signal.

How can I access the F-GEM Trend & Momentum System? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.