OPEN-SOURCE SCRIPT

EMA Bounce

This indicator will:

signal a GREEN triangle if a candle opens below the EMA and closes above the EMA
signal a RED triangle if the candle opens above the EMA and closes below the EMA

Strategy:

First identify the trend (stick to one timeframe, I use 4h)
If in an UP trend, then go LONG on GREEN triangles, do not trade red triangles as that would be a counter-trend trade (I am placing buy stops at the HIGH of the signal candle)
If in a DOWN trend, then go SHORT on RED triangles, do not trade on green triangles as that would be a counter-trend trade (I am placing sell stops at the LOW of the signal candle)
Default EMA is set to 50, you can change to a higher number for less signals or a lower number for more signal

NOTE: You can set up alerts so that you don't have to watch charts and wait for the signals.

If you find this indicator useful, tips and donations are always appreciated. Venmo @rick-munoz :)

Open-source script

In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.

rmunoz

Disclaimer

The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.

Open-source script

rmunoz