TV Script - Trading Dashboard Documentation
Comprehensive documentation for TradingView Pine Script indicators and trading strategies
21 EMA Structure Indicator
Overview
The 21 EMA Structure is a powerful moving average indicator that provides a comprehensive view of price action relative to moving averages. This feature calculates separate moving averages for High, Close, and Low prices, creating a visual “structure” that helps identify trend direction and key support/resistance levels.
Example of the 21 EMA Structure showing High, Close, and Low moving averages with trend-based color coding
Concept Origin
This indicator is inspired by Alex’s Swing Trading System from PrimeTrading Academy, which emphasizes trading pullbacks to the 21-day moving average structure. The methodology focuses on:
- Market timing
- Relative strength
- Disciplined position management
- Trading pullbacks to structure rather than chasing breakouts
Key Features
Three MA Lines
- High MA: Moving average of the high prices
- Close MA: Moving average of the close prices (center line)
- Low MA: Moving average of the low prices
Visual Cloud
- Gray fill between High and Low MAs
- Creates a visual “structure” zone
- Makes it easy to see price boundaries and support/resistance areas
Trend Detection
- Center line (Close MA) changes color based on trend direction
- Uptrend: When all three MAs are rising together
- Downtrend: When all three MAs are falling together
- Color changes only when all three MAs agree on direction
Timeframe Awareness
- Automatically adapts to your chart timeframe
- Daily charts: Uses Daily MA settings (default: 21-period EMA)
- Weekly charts: Uses Weekly MA settings (default: 10-period SMA)
- Separate length and type settings for each timeframe
Configuration Options
MA Settings
- Daily MA Length: Default 21 periods
- Daily MA Type: EMA or SMA (default: EMA)
- Weekly MA Length: Default 10 periods
- Weekly MA Type: EMA or SMA (default: SMA)
Color Customization
- High MA Color: Customizable (default: gray)
- Close MA Uptrend Color: Color when trend is up (default: light gray)
- Close MA Downtrend Color: Color when trend is down (default: magenta)
- Low MA Color: Customizable (default: gray)
- Use Custom Colors: Toggle to use custom colors or default gray
Bar Coloring (Optional)
- Change Bar Color: Enable/disable bar coloring based on MA structure
- Bullish Color: Bars above all MAs (default: black)
- Bearish Color: Bars below structure (default: magenta)
- Bearish Condition: Choose between:
- “High below lowest MA” (default)
- “Close below all MAs”
Visual Settings
- Line Size: Adjustable thickness for all MA lines (default: 1)
- Cloud Color: Customizable gray fill color
Default Settings
- Display: Enabled by default
- Daily: 21-period EMA
- Weekly: 10-period SMA
- Colors: Custom colors enabled
- Bar Coloring: Disabled by default
Trading Applications
Entry Signals
- Pullback to Structure: Look for price to pull back into the MA structure zone
- Reclaim of Structure: Price reclaiming the structure after a break
- Trend Alignment: All three MAs moving in the same direction
Risk Management
- Structure Break: Use Low MA break as a stop-loss level
- Trend Reversal: Center line color change indicates potential trend shift
- Support/Resistance: High and Low MAs act as dynamic support/resistance
Position Sizing
- Closer to Structure: Larger position size when price is near structure
- Extended from Structure: Smaller position size when price is extended (>1x ATR above 21dma)
Integration with Trading System
PrimeTrading Methodology
This indicator integrates with Alex’s swing trading system principles:
- No Breakouts: Wait for pullbacks to structure
- Structure First: Price action relative to structure is primary
- Market Timing: Use in conjunction with market breadth indicators
- Relative Strength: Combine with RS analysis for best setups
Best Practices
- Daily Charts: Use for swing trade entries (5-8 day holds)
- Weekly Charts: Use for position trade entries (longer holds)
- Structure Confluence: Look for weekly structure alignment on daily charts
- Avoid Extended: Don’t buy >1x ATR above the 21dma structure
Technical Details
Calculation Method
// Function to calculate MA
getMaStructure(src, length, maType) =>
switch maType
'SMA' => ta.sma(src, length)
'EMA' => ta.ema(src, length)
=> ta.ema(src, length) // default to EMA
// MA calculations
maStructureHigh = getMaStructure(high, maStructureLength, maStructureType)
maStructureClose = getMaStructure(close, maStructureLength, maStructureType)
maStructureLow = getMaStructure(low, maStructureLength, maStructureType)
Trend Detection Logic
// Trend direction (all 3 MAs must agree)
isRisingMA = maStructureHigh > maStructureHigh[1] and
maStructureClose > maStructureClose[1] and
maStructureLow > maStructureLow[1]
isFallingMA = maStructureHigh < maStructureHigh[1] and
maStructureClose < maStructureClose[1] and
maStructureLow < maStructureLow[1]
Credits
- BalarezoCapital: Original MA Structure concept
- PrimeTrading: Modifications and enhancements
- Alex’s Swing Trading System: PrimeTrading Academy - Inspiration for the 21EMA structure trading methodology