Price Action (EMA)

The Price Action (EMA) algorithm determines trend direction with calculations based on various types of moving average.Exponentional Moving Average

Higher Timeframe

Specifies the higher timeframe on which the EMA will be calculated. If a value other than ‘chart’ is set, this will override the Master Higher Timeframe setting in the Confirmation Control section.

Price Source

Specifies the price source used to calculate EMA:

• Open - open price

• High - highest price

• Low - lowest price

• Close - closing price

• Hl2 - average of high + low price (H+L/2)

• Hlc3 - average of high + low + close price (H+L+C/3)

• Ohlc4 - average of open + high + low + close price (O+H+L+C/4)

• Hlcc4 - average of high + low + double-weighted close (H+L+C+C/4)

• Vol - ETH: Volume - Ethereum volume

• Vol - ETH: Volume MA - Ethereum volume moving average

Elements of other indicators loaded on the chart can also be set as a Source. This allows the use of Lendal Visualizers as Confluence factors.

Lendal Visualizers as a data source

Strategy

Specifies the type of moving average that will be used to analyze price action:

• EMA = Exponential Moving Average

• SMA = Simple Moving Average

• HMA = Hull Moving Average

• WMA = Weighted Moving Average

• RMA = Rolling Moving Average

• SWMA = Simple Weighted Moving Average

• VWMA = Volume Weighted Moving Average

Preset

Specifies if the Fast EMA and Slow EMA cross will be configured manually or according to the selected preset.

Fast

Specifies the period of the Fast Moving Average. Decreasing this value will make the algorithm more sensitive to price fluctuations and vice versa. This setting has a greater effect sensitivity than adjusting the Slow Moving Average and can be used for fine-tuning the algorithm to market volatility

Set this value the same as the Slow Moving Average if you want a price-based cross indication.

Slow

Specifies the period of the Slow Moving Average. Decreasing this value will make the algorithm more sensitive to price fluctuations and vice versa. However, this setting has a smaller effect on sensitivity than adjusting the Fast Moving Average and can be used to tune the algorithm to volatility on longer time frames.

Set this value the same as the Fast Moving Average if you want a price-based cross indication.

Smoothing

Specifies the amount of smoothing applied to moving average calculations. Higher values will make the algorithm less sensitive to fluctuations in price.

Impact

Specifies the number of adjacent candles that will be impacted by Smoothing. Higher values will increase the smoothing effect.

Volatility Mode

Specifies if Volatility Period and Volatility Deviation will be adjusted manually or set to a short, medium, or long-term preset.

Volatility Period

Specifies the lookback period used to calculate Volatility.

Volatility Deviation

Sets the standard deviation used to calculate Volatility. Generally, Volatility Deviation (sd) should be increased as Volatility Period (p) is increased. e.g. p = 10, sd = 1.9; p = 20, sd = 2; p = 50, sd = 2.1. However, these settings may not suit some assets.

Minimum Volatility

Specifies the minimum volatility required for the algorithm to fire signals. Higher values will reduce sensitivity to price fluctuations making signals less frequent, but more reliable. This may prove useful in choppy market conditions.

Volatility detection based on the width of the Bollinger Band technical indicator can also be activated as a global function in the Volatility section. Global volatility detection operates independently of volatility settings within individual factions.

Confluence at Cross Only

When selected, EMA confluence will only activate if a cross occurs in a trend whose direction matches the parent algorithm.