The script calculates the "likely" reversal point of 2 EMAs (3 and 5 for example) and plots as a line. The points there the EMA cross are highlighted with a Purple circle.
The way I use this indicator is by visually confirming that the reversal line is diverting away from price in case of strong trends. Divergences between reversal line and price line are good entry points.
Wait for the price bar to clear the reversal line completely before initiating trades. (No overlaps!)
This is my first indicator script so please be kind on the comments!!
Excellent job!!! Thank you!!! Your script is working well for my trades. Very short term ES and NQ trades on 3min chart.
Bentley_the_cat
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Thank you. Saved to favorites. I want to see how this script reacted to the Feb 9 abrupt downturn so will try it out! I have learnt to use the 10 EMA as a red light green light for entry. Above green below red of course, I am new to trading and at this junction still in cash waiting on the side. Would like to see some stability though it has lately been above the 10 EMA.
sud14
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@Bentley_the_cat, at least it starts to identify the start of the downturn on 1-Jan-2018!