While trading, one of the things I look for is when price or certain EMA's approach another . The example that I use on this 1 minute SPY chart is an 8 and 20 . I am looking for when the 8 and 20 are within' 3 cents of each other. Many times when they are getting close, price is approaching a top or bottom. I am looking for a reversal around that area. You may want to know when PRICE is near the 50 EMA: Use 1 and 50 for that. Having it light up on top of the page, or elsewhere, makes it easier to look for the convergence when it occurs. If it lights up for a long period, price may be going sideways. I don't enter into a trade until the starts separating, usually with another formation.
You are able to change the distance for convergence and two EMA's. Unfortunately you will have to adjust the convergence number up as you increase in time frames. This is designed to see when they are close, not when they cross.
The bars on top of this example are lit up purple due to the 8 and 20 are within' 3 cents of each other.
If you want to overlay the price bars, instead of having it separate, just change overlay to "true"
// Created by Taylor N. 031315 study("EMA_Convergence", overlay=false) Dist = input(.03, title="Maximum distance between EMA's for convergence") ema1 = input(8, title="First EMA") ema2 = input(20, title="Second EMA") plot(ema(close,ema1) >= ema(close,ema2)-Dist and ema(close,ema1) <= ema(close,ema2)+Dist? close : na, title="Column signal for convergence", color = purple, style = columns, linewidth = 2)