Bottom Right Table - EMA Clouds & Market Breadth

Overview

The Bottom Right Table provides comprehensive market timing and breadth analysis through EMA cloud indicators, VIX sentiment analysis, and SPY market condition assessment. This component helps traders determine:

• Stock trend direction (via EMA clouds)
• Market sentiment (via VIX clouds)
• Market breadth extremes (via breadth indicators)
• Optimal trade timeframes (via SPY analysis)

Example of the Bottom Right Table showing EMA clouds, VIX clouds, market breadth indicators, and SPY analysis

Table Layout

Top Section: EMA Clouds (Left) & VIX Clouds (Right)

Stock EMA Clouds (Left Side)

These clouds analyze the stock’s own trend using a 10-minute timeframe:

• 5-12 Cloud: Short-term trend direction
  • Bullish: 5 EMA > 12 EMA (green background)
  • Bearish: 5 EMA < 12 EMA (red background)
• 34-50 Cloud: Medium-term trend direction
  • Bullish: 34 EMA > 50 EMA (green background)
  • Bearish: 34 EMA < 50 EMA (red background)

Usage:

• Both clouds bullish = strong uptrend
• Both clouds bearish = strong downtrend
• Mixed signals = choppy/transitional market

VIX EMA Clouds (Right Side)

These clouds analyze market sentiment using VIX on a 10-minute timeframe:

• VIX 5-12 Cloud: Short-term fear/greed indicator
• VIX 34-50 Cloud: Medium-term fear/greed indicator

Usage:

• VIX clouds bullish (VIX rising) = Market fear increasing (contrarian bullish signal)
• VIX clouds bearish (VIX falling) = Market complacency (contrarian bearish signal)
• Use as contrarian indicator for market timing

Bottom Section: Market Breadth & SPY Analysis

Market Breadth Indicators (Bottom Left)

Helps identify market breadth extremes for both short-term and mid-term analysis:

• 5% Breadth: Percentage of stocks above their 5-day SMA
  • GO (< 20): Oversold condition - good entry opportunity (green)
  • Warning (> 75): Overbought condition - caution (red)
  • Neutral: Normal breadth conditions (purple)
• 20% Breadth: Percentage of stocks above their 20-day SMA
  • GO (< 30): Oversold condition - good entry opportunity (green)
  • Warning (> 75): Overbought condition - caution (red)
  • Neutral: Normal breadth conditions (purple)

Usage:

• Extreme Oversold: Both breadth indicators in GO zone = potential market bottom
• Extreme Overbought: Both breadth indicators in Warning zone = potential market top
• Divergences: Stock making new highs while breadth declining = weakening market

SPY Market Condition (Bottom Right)

Helps determine optimal trade timeframe based on SPY’s position relative to key moving averages:

Trade Condition Display:

• Market Above 20 & 50 Day:
  • Trade Type: Swings → Position Trades
  • Timeframe: Longer holds (5-8+ days)
  • Color: Green
• Market Above 50 Day:
  • Trade Type: Swing trades
  • Timeframe: 5-8 day holds
  • Color: Green
• Above 20 Below 50 Day:
  • Trade Type: Short Swings
  • Timeframe: 1-2 day holds
  • Color: Red
• Market Below 50 Day:
  • Trade Type: Short Swings
  • Timeframe: 1-2 day holds
  • Color: Red

Days SPY > 20 EMA:

• Shows consecutive days SPY has closed above its 20 EMA
• Higher count = stronger trend
• Resets to 0 when SPY closes below 20 EMA

Days Since Low < EMA:

• Tracks days since SPY’s low was below its 20 EMA
• Helps identify recent pullback/retest patterns

Technical Details

EMA Cloud Calculations

// Stock EMAs on 10-minute timeframe
[ema5, ema12, ema34, ema50] = request.security(syminfo.tickerid, '10', 
    [ta.ema(close, 5), ta.ema(close, 12), ta.ema(close, 34), ta.ema(close, 50)])

// VIX EMAs on 10-minute timeframe
[vix_ema5, vix_ema12, vix_ema34, vix_ema50] = request.security('VIX', '10', 
    [ta.ema(close, 5), ta.ema(close, 12), ta.ema(close, 34), ta.ema(close, 50)])

Market Breadth Calculations

// Percentage above 5-day SMA
percent_above_5 = request.security('NDFD', '1D', close)

// Percentage above 20-day SMA
percent_above_20 = request.security('S5TW', '1D', close)

SPY Analysis

// SPY daily close and MAs
spy = request.security('SPY', 'D', close)
ma50 = ta.sma(spy, 50)
ma20 = ta.ema(spy, 20)

// Conditions
above_50_and_20 = spy > ma50 and spy > ma20
above_50 = spy > ma50
above_20 = spy > ma20
below_50 = spy < ma50

Trading Applications

Entry Timing

1. Check Stock Clouds: Both 5-12 and 34-50 bullish = favorable trend
2. Check VIX Clouds: Rising VIX (bullish clouds) = contrarian bullish signal
3. Check Breadth: Oversold breadth (< 20% on 5-day, < 30% on 20-day) = good entry
4. Check SPY Condition: Above 20 & 50 = longer holds possible

Position Sizing

• Strong Alignment: All indicators bullish + SPY above both MAs = larger size
• Mixed Signals: Conflicting clouds or SPY below 50 = smaller size
• Extreme Breadth: Oversold breadth = potential for larger moves

Trade Timeframe Selection

• SPY Above 20 & 50: Position trades (5-8+ days)
• SPY Above 50 Only: Swing trades (5-8 days)
• SPY Below 50: Short swings (1-2 days) or cash

Risk Management

• Cloud Reversals: Stock clouds turn bearish = reduce exposure
• Breadth Warnings: Breadth > 75% = overbought, trim positions
• SPY Breakdown: SPY breaks below 50 SMA = defensive mode

Best Practices

1. Wait for Alignment: Best setups when stock clouds, breadth, and SPY all align
2. Use VIX as Contrarian: Rising VIX (bullish clouds) often precedes market bottoms
3. Monitor Breadth Extremes: Oversold breadth + bullish clouds = high probability setup
4. Respect SPY Condition: Don’t fight the market - adjust timeframe based on SPY position
5. Track Days Above EMA: Longer streaks = stronger trends = larger position sizes

Configuration Options

Display Toggles

• Show Clouds: Enable/disable the entire cloud table
• Show Trend Labels: Show/hide the EMA cloud labels
• Show Market Breadth: Show/hide breadth indicators (requires show_clouds enabled)

EMA Lengths

• Length for 5 EMA: Default 5
• Length for 12 EMA: Default 12
• Length for 34 EMA: Default 34
• Length for 50 EMA: Default 50

Visual Settings

• Table Size: Tiny, Small, Normal, or Large
• Background Color: Customizable table background
• Text Color: Customizable text color

Request Call Efficiency

• Total Calls: 2 request calls
  1. Stock EMAs (4 values consolidated)
  2. VIX EMAs (4 values consolidated)
• Breadth Data: Uses TradingView custom symbols (NDFD, S5TW)
• SPY Data: Single daily request for SPY analysis

Related Documentation

• Main Dashboard Documentation
• 21 EMA Structure Indicator
• Top Right Table - Market Data Dashboard