Essa's Indicator 2.0

19 Sep

Essa's Indicator V2: Beginner's Guide

This custom TradingView indicator has been designed to help you identify key trading opportunities based on session highs/lows, volatility, and moving averages. Below is a breakdown of the main features:

1. Exponential Moving Averages (EMAs)
Fast EMA (Blue Line): Tracks the short-term market trend (default: 9-period EMA).
Slow EMA (Red Line): Tracks the longer-term market trend (default: 21-period EMA).

You can turn on/off the EMAs using the "Show EMAs" option in the settings.
EMAs help smooth out price action and give a clearer picture of trends. A crossover of the fast EMA above the slow EMA can signal an upward trend, while the reverse may indicate a downward trend.

2. Session Highs and Lows
The indicator tracks price highs and lows for three major trading sessions:

• London Session (Red): Highlighted in red. Active between 08:00 and 17:00 (LDN timezone) or 03:00 and 12:00 (NY timezone).
  
• New York Session (Blue): Highlighted in blue. Active between 12:00 and 21:00 (LDN timezone) or 07:00 and 16:00 (NY timezone).
  
• Asia Session (Yellow): Highlighted in yellow. Active between 22:00 and 08:00 (LDN timezone) or 18:00 and 03:00 (NY timezone).
  

Highs and lows for each session are plotted on the chart as lines. Breakouts from these levels can signal important trading opportunities:

• London High/Low: Red lines.
  
• New York High/Low: Blue lines.
  
• Asia High/Low: Yellow lines.
  

The background color also changes depending on the active session:

• London: Light red background.
  
• New York: Light blue background.
  
• Asia: Light yellow background.
  

3. Breakout Alerts
You can set alerts when the price breaks above or below session highs/lows:

Break Above London High: Alert triggered when the price crosses the London session high.
Break Below London Low: Alert triggered when the price falls below the London session low.
Similar alerts exist for the New York and Asia sessions as well.

4. Volatility-Adjusted EMA
The EMAs in this indicator are adjusted based on volatility (ATR - Average True Range). This allows the EMAs to respond to market conditions more dynamically, giving you more accurate trend readings in volatile markets.

5. ZigZag Feature (Optional)
You can enable the ZigZag feature to help visualize the price action's highs and lows:

ZigZag Lines: Highlight major peaks and troughs in price movements, helping you spot trends more easily.
This is helpful for identifying reversals or trend continuations.

6. Fractal Markers
This indicator uses fractals to mark potential turning points in the market:

Green Triangles (Above the Price): Indicate up fractals (potential reversal points where the price could move upwards).
Red Triangles (Below the Price): Indicate down fractals (potential reversal points where the price could move downwards).

Fractals can be a helpful confirmation tool when identifying entry and exit points.

7. Custom Timezone Options
You can choose between London (LDN) and New York (NY) timezones in the settings to adapt the session times to your trading location. This ensures the session high/low markers are displayed correctly for your trading region.

By default, the New York (NY) timezone is enabled for FXCM charts in the UK.
For BTC charts, you will need to switch to the appropriate time zone manually.

Thanks
Essa