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Livermore AI EMA S/R Channel with VWAP
Malama's Livermore AI EMA S/R Channel is a comprehensive trend-following and reversal detection system inspired by Jesse Livermore's legendary trading principles, modernized with advanced algorithmic filtering. This enhanced version integrates multiple layers of confirmation to filter noise and identify high-probability setups.
Justification for this Combination (The Mashup): Trading purely on price action or basic moving averages often leads to whipsaws. This script solves that problem by enforcing Confluence. A signal is only generated when Trend (EMA/VWAP), Momentum (RSI/MACD), Volume (Spikes), and Market Structure (Pivots/Support & Resistance) all align in a single bar. Merging these distinct analytical methods into one "Signal Engine" prevents the trader from needing to check five different indicators manually.
Underlying Calculations & Logic:
1. Dynamic Support & Resistance Engine:
The script calculates a cluster of significant EMAs (9, 24, 50, 200) and VWAP in real-time.
It actively monitors the price's distance from these levels. If price approaches within a specific ATR-based buffer zone, the script registers a potential "Bounce" or "Breakout" event.
2. Smart Pivot Detection:
It uses a customizable lookback period to identify significant swing highs and lows.
These pivots act as the primary triggers. A "BUY" or "SELL" signal is only authorized if price breaks a confirmed pivot level while the other filters (Trend, Volume, ADX) are green.
3. Multi-Layered Filtering (The AI Logic):
Trend: Checks alignment with the 9/24 EMA Channel. (9 > 24 = Bullish).
Momentum: An optional "Enhanced Signal Processing" module calculates a weighted score based on RSI position and MACD histogram slope to confirm trend strength.
Volume: Detects relative volume spikes (Volume > Average * Multiplier) to ensure institutional participation.
ADX: Filters out choppy, low-momentum markets (ADX < 20).
4. Live Intelligence Dashboards:
Debug Table: Shows the real-time status of every filter (ADX strength, RSI zone, Volume spike status, and nearest S/R levels).
Alert Table: Logs recent signals and bounces directly on the chart in a history table, ensuring you never miss the context of a setup.
How to Use:
Trend Following: Look for "BUY" or "SELL" labels. These appear when price breaks a pivot in the direction of the trend with volume and momentum confirmation.
Reversal Trading: Monitor the "Bounce" alerts in the table. These indicate price is respecting a key EMA or VWAP level, offering a low-risk entry point.
Risk Management: Use the EMA Channel (Green/Red fill) as a dynamic trailing stop zone.
Disclaimer: This indicator is a tool for analysis, not a guarantee of future performance. Always use proper risk management.
Justification for this Combination (The Mashup): Trading purely on price action or basic moving averages often leads to whipsaws. This script solves that problem by enforcing Confluence. A signal is only generated when Trend (EMA/VWAP), Momentum (RSI/MACD), Volume (Spikes), and Market Structure (Pivots/Support & Resistance) all align in a single bar. Merging these distinct analytical methods into one "Signal Engine" prevents the trader from needing to check five different indicators manually.
Underlying Calculations & Logic:
1. Dynamic Support & Resistance Engine:
The script calculates a cluster of significant EMAs (9, 24, 50, 200) and VWAP in real-time.
It actively monitors the price's distance from these levels. If price approaches within a specific ATR-based buffer zone, the script registers a potential "Bounce" or "Breakout" event.
2. Smart Pivot Detection:
It uses a customizable lookback period to identify significant swing highs and lows.
These pivots act as the primary triggers. A "BUY" or "SELL" signal is only authorized if price breaks a confirmed pivot level while the other filters (Trend, Volume, ADX) are green.
3. Multi-Layered Filtering (The AI Logic):
Trend: Checks alignment with the 9/24 EMA Channel. (9 > 24 = Bullish).
Momentum: An optional "Enhanced Signal Processing" module calculates a weighted score based on RSI position and MACD histogram slope to confirm trend strength.
Volume: Detects relative volume spikes (Volume > Average * Multiplier) to ensure institutional participation.
ADX: Filters out choppy, low-momentum markets (ADX < 20).
4. Live Intelligence Dashboards:
Debug Table: Shows the real-time status of every filter (ADX strength, RSI zone, Volume spike status, and nearest S/R levels).
Alert Table: Logs recent signals and bounces directly on the chart in a history table, ensuring you never miss the context of a setup.
How to Use:
Trend Following: Look for "BUY" or "SELL" labels. These appear when price breaks a pivot in the direction of the trend with volume and momentum confirmation.
Reversal Trading: Monitor the "Bounce" alerts in the table. These indicate price is respecting a key EMA or VWAP level, offering a low-risk entry point.
Risk Management: Use the EMA Channel (Green/Red fill) as a dynamic trailing stop zone.
Disclaimer: This indicator is a tool for analysis, not a guarantee of future performance. Always use proper risk management.
Korumalı komut dosyası
Bu komut dosyası kapalı kaynak olarak yayınlanmaktadır. Ancak, ücretsiz ve herhangi bir sınırlama olmaksızın kullanabilirsiniz – daha fazla bilgiyi buradan edinebilirsiniz.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.
Korumalı komut dosyası
Bu komut dosyası kapalı kaynak olarak yayınlanmaktadır. Ancak, ücretsiz ve herhangi bir sınırlama olmaksızın kullanabilirsiniz – daha fazla bilgiyi buradan edinebilirsiniz.
Feragatname
Bilgiler ve yayınlar, TradingView tarafından sağlanan veya onaylanan finansal, yatırım, alım satım veya diğer türden tavsiye veya öneriler anlamına gelmez ve teşkil etmez. Kullanım Koşulları bölümünde daha fazlasını okuyun.