EMA
Crossover
Signal is a powerful VertexFX client Side VTL trending indicator that
provides precise entry and exit signals depend on Exponential Moving Averages
(EMA).
This indicator has two components
- the fast moving Exponential Moving (Average calculated using MA_FAST period),
and the slow moving Exponential Moving Average calculated using the
MA_SLOW period.
Buy signal is triggered when the
fast moving EMA crosses is above the slow moving EMA. Similarly,
the Sell signal is triggered when the fast moving EMA crosses
below the slow moving EMA.
The concept behind this indicator is that the
fast moving EMA responds faster to the trends as compared to the
slower EMA. Hence, as the market is rising, the faster EMA will
move upwards earlier than the slower EMA, and thus a Buy signal
is generated. When the trend weakens, both EMA's are nearly identical
and hence the market has reached exhaustion.
When the price starts falling
down, the fast moving EMA once again responds faster to this fall,
and goes below the slow EMA and a Sell signal is generated.
Buy: Place Buy position when
Buy arrow is displayed at the close of the candle. Do not enter trade if a
gap-up is observed. Place the stop-loss slightly below the nearest swing low.
Sell: Place Sell position
when Sell arrow is displayed at the close of the candle. Do not enter the trade
if a gap-down is observed. Place the stop-loss slightly above the nearest swing
high.
To use EMA Crossover indicator
download it from here, then place it at VertexFX VTL directory:
C:\ProgramData\VertexFX
Client Terminals\"Company name"\VTL10\Local VTL Scripts
Then right click on
the tree and select refresh or restart your client station and you will find
under VTL local scripts in your client
terminal.
You can check this
video that talks about EMA Crossover indicator: