[EVI]EMA with Volume Levels

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The "[EVI] EMA with Volume Levels" script calculates the Exponential Moving Average (EMA) of the closing prices over a specified period and dynamically changes the color of the EMA based on volume levels. This indicator helps traders easily identify the current volume conditions. As the volume increases or decreases, the color of the EMA changes, providing a visual cue that can assist in making better trading decisions.

Features
This script offers the following features:

EMA Calculation: Calculates the Exponential Moving Average of the closing prices over the user-defined period (default is 360).

Volume Threshold Calculation: Computes the Simple Moving Average (SMA) and standard deviation of the volume over the user-defined period (default is 500), classifying the volume levels into extreme, high, medium, and low.

Dynamic EMA Color: Changes the color of the EMA dynamically based on volume levels, displaying it visually on the chart.


Chart Interpretation
EMA Color and Volume:
If the EMA line is red, it indicates very high volume.
If the EMA line is green, it indicates high volume.
If the EMA line is light green, it indicates medium volume.
If the EMA line is gray, it indicates low volume.
If the EMA line is dark gray, it indicates very low volume.

Cross Analysis:
When the EMA line and the candles are about to cross, and the volume is high (causing the EMA line to turn red), the candles are more likely to break through the 360-day EMA line.

Conversely, if the volume is low and the EMA line turns dark, the EMA line will likely act as a resistance or support level, increasing the likelihood of a bounce.

Additional Indicator:
Using the 20-day moving average along with this script can be beneficial. Combining these two moving averages can provide a more comprehensive view of market volatility.
Notes

Clean Chart: Ensure your chart is clean when using this script. Avoid including other scripts or unnecessary elements.

Additional Explanation: If further explanation is needed on how to use or understand the script, you can use drawings or images on the chart to provide additional context.