Extended EMA/SMA Analysis

Overview

The Extended EMA/SMA Analysis system measures how far price has extended from key moving averages, providing both ATR-based and percentage-based measurements. This helps identify overextended conditions and optimal entry/exit levels.

Measurement Types

ATR Multiples

Purpose: Measures distance in Average True Range multiples
Usage: Normalized volatility-based measurement
Formula: (close - MA) / ATR
Interpretation:
- < 0.5 ATR: Close to MA
- 0.5-1.0 ATR: Moderate extension
- 1.0 ATR: Extended (avoid new entries)

Percentage Distance

Purpose: Measures percentage distance from MA
Usage: Easy-to-understand extension measurement
Formula: (close - MA) / MA * 100
Interpretation: Positive = above MA, Negative = below MA

Tracked Moving Averages

Short-Term EMAs

3 EMA

Display: Conditional (when RSI < 31)
Color: Green/red background based on direction
Usage: Very short-term momentum

4 EMA (High)

Display: Conditional (when RSI >= 31)
Calculation: EMA of high prices
Usage: Pivot level identification
Color: Green/red background

5 EMA

Display: Always shown when Extended enabled
Color: Green/red background
Usage: Short-term extension

10 EMA

Display: Always shown when Extended enabled
Color: Green/red background
Usage: Short-term trend extension

Medium-Term EMAs

20 EMA

Display: Always shown when Extended enabled
Color: Green/red background
Usage: Medium-term trend extension
Note: Can show “Pre” label when approaching earnings

20 EMA (Hourly)

Calculation: 20 EMA from hourly timeframe
Display: In EMA values floating label
Usage: Hourly trend context

Long-Term SMAs

50 SMA

Display: Conditional (when show_longer_ma enabled or extension < 0.1)
Color: Blue text
Usage: Medium-term trend analysis

200 SMA

Display: Conditional (when show_longer_ma enabled or extension < 0.1)
Color: Red text
Usage: Long-term trend analysis

Display Format

Table Format (Top Right)

Each extended MA shows:

Extended EMA X: [ATR multiple] / [percentage]% ([MA value])

Example:

Extended EMA 20: 1.22 / 11.28% (97.06)

Floating Label Format

Shows multiple EMAs in single label:

EMA (hourly): X% (value) / extended
EMA: X% (value) / extended
EMA: X% (value) / extended
EMA: X% (value) / extended

Color Coding

Background Colors

Green (#17880b51): Price above MA (positive extension)
Red (#880b0b50): Price below MA (negative extension)

Text Colors

Standard: Default text color
50 SMA: Blue (#1114a1)
200 SMA: Red (#c40f0f)

Trading Applications

Entry Timing

Close to Structure: Extended < 0.5 ATR = good entry zone
Moderate Extension: 0.5-1.0 ATR = acceptable but watchful
Overextended: > 1.0 ATR = avoid new entries, trim positions

Position Sizing

Near Structure: Larger position size when extended < 0.5 ATR
Extended: Smaller position size when extended > 1.0 ATR
Very Extended: Consider trimming when > 1.5 ATR

Exit Strategy

Trim into Strength: Trim positions when extended > 1.0 ATR
Re-entry: Wait for pullback to structure (< 0.5 ATR)

Configuration Options

Display Toggles

Show Extended: Master toggle for extended section
Show Longer MAs: Toggle 50 SMA and 200 SMA display
Show 3 EMA + RSI: Toggle 3 EMA/4 EMA conditional display

Input Settings

Extended EMA Input: Which EMA to show extension from (default: 20)
Extended SMA Input: Which SMA to show extension from (default: 50)
RSI Length: For 3 EMA/4 EMA conditional logic (default: 14)

Best Practices

Avoid Extended Entries: Don’t buy >1x ATR above 21dma structure
Watch Multiple MAs: Check extension from multiple timeframes
Combine with Structure: Use with 21 EMA structure for best results
Trim into Strength: Use extension levels for profit-taking
Re-entry Zones: Wait for pullback to structure before adding

Technical Details

Calculation Method

// ATR-based extension
extended_ema = (close - price_ema) / atr

// Percentage extension
percent_change_from_ema = (close - price_ema) / price_ema * 100

// Conditional display
if show_longer_ma or percent_change_from_sma < 0.1
    // Show 50 SMA

Conditional Logic

50/200 SMA: Only shows when show_longer_ma enabled OR extension < 0.1
3 EMA vs 4 EMA: Switches based on RSI level (< 31 = 3 EMA, >= 31 = 4 EMA)