average EMA penetration

Forums ProRealTime English forum ProBuilder support average EMA penetration

Viewing 4 posts - 1 through 4 (of 4 total)
  • #159598

    Hello,

    I am currently reading Alexander Elder’s “The new Trading For A Living” book and he describes setting a BUY target at an “average EMA penetration.”  I am looking for an indicator that can give me the following value:

    on a daily chart, if EMA value is in an uptrend, looking back at last 40 bars:

     

    calculate an average penetration :

    if closing price is lower than EMA, then subtract the closing price from the EMA (average this number for the last 40 bars)

    estimate the EMA of tomorrow:

    EMA tomorrow = EMA of today + (EMA of today – EMA of yesterday)

    Calculate an entry point:

    EntryPoint = EMA tomorrow – average penetration

    return Entry

     

    Is it possible to program this as an indicator?

    #159604

    There you go:

    I considered EMA being on an UPtrend when it’s higher than 5 bars ago, but you can change it as it best suits you.

     

    2 users thanked author for this post.
    #159609

    This might be of interest to you:

    https://www.prorealcode.com/prorealtime-indicators/average-penetration-indicator/

    2 users thanked author for this post.
    #159611

    Many thanks you to you both this is perfect!

Viewing 4 posts - 1 through 4 (of 4 total)

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