This script has two main functions focusing on EMAs (Exponential Moving Average) and Stochastic RSI.
EMAs
EMAs are typically used to give a view of bullish / bearish momentum. When the shorter EMA (calculated off more recent price action) crosses, or is above, the slower moving EMA (calculated off a longer period of price action), it suggests that the market is in an uptrend. This can be an indication to either go long on said asset, or that it is more preferable to take long setups over short setups. Invalidation on long setups is usually found via price action (e.g. previous lows) or simply waiting for an EMA cross in the opposite direction (i.e. shorter EMA crosses under longer term EMA). This is not a perfect system for trade entry or exit, but it does give a good indication of market trends. The settings for the EMAs can be changed based on user inputs, and by default the candles are coloured based on the crosses to make it more visual. The default settings are based on “Trader XO’s” settings who is an exceptional swing trader.
RSI Stochastic RSI is a separate indicator that has been added to this script. RSI measures Relative Strength (RSI = Relative Strength Index). When RSI is <20 it is considered oversold, and when >80 it is overbought. These conditions suggests that momentum is very strong in the direction of the trend. If there is a divergence between the price (e.g. price is creating higher highs, and stoch RSI is creating lower highs) it suggests the strength of the trend is weakening. Whilst this script does not highlight divergences, what it does highlight is when the shorter term RSI (K) crosses over D (the average of last 3 periods). This can give an indication that the trend is losing strength.
Combination The EMAs indicate when trend shifts (bullish or bearish). The RSI indicates when the trend is losing momentum. The combination of the two can be used to suggest when to prefer a directional bias, and subsequently shift in anticipation of a trend reversal. Note that no signal is 100% accurate and an interpretation of market conditions and price action will need to be overlayed to
Why is it different to others?
I have not found other scripts that are available in this way visually including alerts when Stoch RSI crosses over/under the extremes; or the mid points. Whilst these indicators are default, the combination of them and how they are presented is not and makes use of the TradingView colouring functionalities.
What are the features?
Customise the variables (averages) used in the script. Display as one EMA or two EMAs (the crossing ones). Alerts on EMA crosses. Alerts on Stoch RSI crosses - slow/fast, upper, lower areas. - Currently set on the chart to show alerts when Stoch RSI is above 80, then falls below 80 (and colours it red). Customisable colours.
What are the best conditions for this? It is designed for high timeframe charts and analysis in crypto, since crypto tends to trend. It can however be used for lower timeframes.
Disclaimer/Notes: I have noticed several videos appearing suggesting that this is a "100% win rate indicator" . NO indicator has 100% win rate. An indicator is an *indicator* that is all.
Please use responsibly and let me know if there are any mods or updates you would like to see.
This indicator coupled with a few other EMAs, VWAP and a different RSI improved my entries and exits dramatically. Thank you so much!!!
dadada4635
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Thankyou so much for this great indicator. I am automating by using alerts. Is there a way to modify the code so that there will only be relevant Stoch crossover/under alerts when a position is open? I have already split the Stoch alert into crossunder and crossover. For example, EMA gives a bullish signal and alert is generated opening a long position, following this, is there a way to only have the alert trigger for a stoch crossunder ONCE, until it generates another EMA bullish signal?
stephanreich
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is it possible to prevent repainting?
J38moneymaker
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Can this be used on mt4
mefishin00
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Does this work with stock?
ejhunter
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Hey fam is this indicator still available on trading view or was it removed?
@Apaca1ypse, my bad… On TradingView look for btc,charlie (not Google)
Keeraiz
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hi nice indicator but does it repaint ?
pjrTrading
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Hi Charlie. I have started using your Trader XO Macro Trend Scanner indicator and love it but do have one small problem with using it. I prefer to use Trading View in dark mode so the text indicators are invisible. I've hacked it to show them in White instead of Black, but I wonder if you wouldn't mind making them configurable, for other users who don't know how to do that.