OPEN-SOURCE SCRIPT
Colored Columns for Elder's Force Index EMA
The Elder's Force Index is an oscillator that takes into account the change of the price combined with the volume:
EFI = (close of the current day - close of the previous day) * volume of the current day
If measure the force of the price change.
If you calculate the exponential moving average of the last two days to smooth the signal EMA(EFI,2), you have a nice buy/sell indicator in the context of the "Elder Triple Screen Method":
- If you are in a long term uptrend (for example ema(13) going up), you have a buy signal if EFI(2)<0, because then you have a short term downtrend in a long term uptrend. Put a "stop buy" a bit higher in case the long term uptrend continues.
- If you are in a long term downtrend (for example ema(13) going down), you have a sell signal if EFI(2)>0, because then you have a short term uptrend in a long term downtrend. Put a "stop sell" a bit lower in case the long term downtrend continues.
This graph shows you colored columns for the EMA(EFI,2), which is more visible than the one-color indicator provided by default by TV.
You can also display the EFI itself on top of the columns. (optional, I personaly do not use it)
PS: ema(13) is to make the explanation simple. Personaly, I use MACD histogram on a weekly view to define if I am on a long term uptrend or downtrend.
EFI = (close of the current day - close of the previous day) * volume of the current day
If measure the force of the price change.
If you calculate the exponential moving average of the last two days to smooth the signal EMA(EFI,2), you have a nice buy/sell indicator in the context of the "Elder Triple Screen Method":
- If you are in a long term uptrend (for example ema(13) going up), you have a buy signal if EFI(2)<0, because then you have a short term downtrend in a long term uptrend. Put a "stop buy" a bit higher in case the long term uptrend continues.
- If you are in a long term downtrend (for example ema(13) going down), you have a sell signal if EFI(2)>0, because then you have a short term uptrend in a long term downtrend. Put a "stop sell" a bit lower in case the long term downtrend continues.
This graph shows you colored columns for the EMA(EFI,2), which is more visible than the one-color indicator provided by default by TV.
You can also display the EFI itself on top of the columns. (optional, I personaly do not use it)
PS: ema(13) is to make the explanation simple. Personaly, I use MACD histogram on a weekly view to define if I am on a long term uptrend or downtrend.
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Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.
Skrip sumber terbuka
Dalam semangat TradingView sebenar, pencipta skrip ini telah menjadikannya sumber terbuka, jadi pedagang boleh menilai dan mengesahkan kefungsiannya. Terima kasih kepada penulis! Walaupuan anda boleh menggunakan secara percuma, ingat bahawa penerbitan semula kod ini tertakluk kepada Peraturan Dalaman.
Penafian
Maklumat dan penerbitan adalah tidak bertujuan, dan tidak membentuk, nasihat atau cadangan kewangan, pelaburan, dagangan atau jenis lain yang diberikan atau disahkan oleh TradingView. Baca lebih dalam Terma Penggunaan.