Pucci Trend EMA-SMA Crossover with Tolerance

Pucci Trend EMA-SMA Crossover with Tolerance

This indicator helps identify market trends and generates trading signals based on the crossover between an Exponential Moving Average (EMA) and a Simple Moving Average (SMA) with an adjustable tolerance threshold. The signals work as follows:

Buy Signal (B) -> Triggers when the EMA crosses above the SMA, exceeding a user-defined tolerance (in basis points). Optionally, a price filter can require the high or low to be below the EMA for confirmation.

Sell Signal (S) -> Triggers when the SMA crosses above the EMA, exceeding the tolerance. The optional price filter may require the high or low to be above the EMA.

The tolerance helps reduce false signals by requiring a minimum distance between the moving averages before confirming a crossover. The price filter adds an extra confirmation layer by checking if price action respects the EMA level.

Important Notes:
1º No profitability guarantee: This tool is for analysis only and may generate losses.
2º "As Is" disclaimer: Provided without warranties or responsibility for trading outcomes.
3º Use Stop Loss: Users must determine their own risk management.
4º Parameter adjustment needed: Optimal MA periods and tolerance vary by timeframe.
5º Filter impact varies: Enabling/disabling the price filter may improve or worsen performance.