ED by bigmm

ED by bigmm identifies significant price divergences from the 200-period Exponential Moving Average (EMA) by analyzing closing and opening price extremes. This tool marks the three most recent candles with the largest percentage deviations.

Key Features

• EMA200 Analysis: Uses the 200-period Exponential Moving Average as the primary reference level for measuring price deviations
  
• Deviation Calculation: Computes percentage-based deviations for both closing (below EMA) and opening (above EMA) prices
  
• Top 3 Extremes: Identifies and marks only the three most recent maximum deviations for each direction
  
• Visual Simplicity: Uses minimalistic green and red dots for clear visual identification without chart clutter
  
• Historical Analysis: Evaluates the last 1440 bars (approximately 3 years on daily timeframe) to find significant deviation patterns
  

Recommended Usage
Best used on higher timeframes (H4, D1, W1) for the following reasons:

• Reduced Noise: Higher timeframes filter out market noise and provide cleaner deviation signals
  
• Trend Context: EMA200 carries more significance on daily and weekly charts as a major trend indicator
  
• Strategic Signals: Extreme deviations on higher timeframes often correspond to important support/resistance levels and potential reversal zones
  
• Reduced False Signals: Longer timeframes minimize whipsaws and provide more reliable extreme readings
  
• Position Trading: Ideal for swing traders and position traders who base decisions on daily or weekly price action