RoGr75 - EMA Cross Signal with Buffer and Variable Distance
**Overview**: This script is designed to identify potential buy and sell signals based on the crossover of two Exponential Moving Averages (EMAs) – a short-term EMA (default: 8 periods) and a long-term EMA (default: 50 periods). To reduce noise and false signals, the script incorporates a customizable buffer percentage, ensuring that signals are only generated when the short-term EMA moves significantly above or below the long-term EMA. Additionally, the script allows users to adjust the distance of the signals from the candles using the Average True Range (ATR) for better visualization.
--- Improvements: Added Buffer Percentage for reduced noise in Signals
### **Key Features**: 1. **EMA Crossover Signals**: Buy Signal: Generated when the short-term EMA crosses above the long-term EMA. Sell Signal: Generated when the short-term EMA crosses below the long-term EMA.
2. **Buffer Percentage**: A user-defined buffer percentage ensures that signals are only triggered when the short-term EMA moves a specified percentage above or below the long-term EMA, reducing false signals.
3. **Customizable Signal Distance**: Signals are plotted at a user-defined distance from the candles, calculated using the ATR (Average True Range) for dynamic positioning.
4. **Visual Enhancements**: Buy and sell signals are displayed as labels above or below the candles, with optional background highlighting for better visibility.
5. **Flexible Inputs**: Users can customize the lengths of the short-term and long-term EMAs, the ATR period, the signal distance multiplier, and the buffer percentage.
6. **Alerts**: Built-in alert conditions allow users to receive real-time notifications for buy and sell signals.
### **Input Parameters**: **Short EMA Length**: Period for the short-term EMA (default: 8). **Long EMA Length**: Period for the long-term EMA (default: 50). **Signal Distance**: Multiplier for ATR to determine the distance of signals from the candles (default: 2.0). **ATR Length**: Period for the ATR calculation (default: 14). **Buffer Percentage**: Percentage buffer for reversal signals to reduce noise (default: 1.0%).
### **Ideal For**: Traders who use EMA crossovers as part of their strategy. Those looking to reduce false signals with a buffer mechanism. Users who prefer dynamic signal positioning based on market volatility (ATR).
### **Notes**: The buffer percentage ensures that signals are only generated when the price moves significantly, making it suitable for trend-following strategies. The script is highly customizable, allowing traders to adapt it to different timeframes and instruments.
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