It's based on two different type of approaches to the EMAs periods:
- Classic EMAs periods: 10 and 50
- Cycle EMAs perdios: 16, 64 and 256
The 256 period EMA (Annual Cycle) detects the trend: if the EMA 64 (Three-Weekly Cycle) is above, it shows an uptrend; while the EMA 64 is below, it means that the price action is in downtrend.
10 and 16 periods EMAs are working together as well as the 50 and the 64. The first couple reacts faster than the second one and as soon as the 10 is above the 16, the band shows the first attempt of the price action to go in the uptrend direction. The same concept is applied to the second couple (50, 64): when EMA 50 > EMA 64 it's a confirmation of the faster EMAs long direction. Viceverca happens for the downtrend but with the same concept.
As the EMA periods taken in consideration are quite often a sensitive level of reaction of the price, the indicator detects when there is trigger of a long or a short set up and plots a label on the chart. It's possibile to set up an alert as well.
Quite important, the indicator is looking for sideways patterns as the breakout of them shows a clear direction of the price.
Moreover, in order to privide the first and the best entry possibile, the indicator has a function that is triggering only one time as the trend reverted: for example, a long entry on the EMA 10-16 happens only one time since they crossover the EMA 64.
As included in the name, this is a beta version and new improvements will be added in the near future like suggested price entry, SL and TP, and the focus of the development is to avoid as much as possibile the false triggers.
Of course the best way to improve the code is to receive the users' feedbacks, so please feel free to post your comments and questions.
- I have prefered to emphasize the cycle periods for the EMAs instead of the classic ones
- The long and short signals are provided now with a suggested entry and a suggested stop loss
- The aspect of the indicator now more clean as it's showing just the long trend EMA that change the color following the trend of the price action
- A kind remind is important as I want to stress that this is a trend-following indicator that works very well when a new trend starts but provides some fake signals when the price action is sideway
- The next update will be focused on how to find out a good solution to remove the noise: your feedbacks will be very usefull in order to achieve this goal
- Last but not least, you are able to set up different alerts based on different TF
Thank to all the Trading View community.
PS: As the first publication, the name remains "Rainbow Drift Beta".
- Customized Menu
- Scalping, Intraday or Middle Range trading option (the indicator works only with specific TF)
- 2 type of Market: Crypto or Stocks & Forex
- Adaptive EMA's period based on the TF chart and Market
- A new definition of Trend and Flow of the price action
- Sideway detection option
- Higher TF OHLC and 5 period EMA
- Trading information table
- 3 type of different alerts
Please continue to provide your feedbacks in order to continue to improve this indicator for a better trading.
Custum HT EMA period.
Support and resistance levels on long/short triggers.
Pivot points added.
H4 timeframe available.
BNF triggers on daily chart added.
Buy the dip levels on daily chart added.
Close to ATH/ATL on weekly chart added.
Larger size of the font used for the table.
Best case use: enter your trade on the open price of the following trigger bar and place your stop loss on the wick belonging to the trigger bar.
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