EMAs Bullish/Bearish Confluence [Trend Bias]

EMA Confluence Zones [Trend Bias]

This indicator is designed to simplify trend identification by visually highlighting "Confluence Zones" —areas where short-term, medium-term, and long-term momentum are fully aligned.

While traders can manually add three Moving Averages to a chart, identifying the exact moment all three align (the "Perfect Stack") can be visually difficult during live trading. This script automates that process, converting complex line crosses into simple background color zones and providing actionable alerts for the exact moment a trend alignment begins.

🛠 How It Works

The script utilizes three customizable Exponential Moving Averages (EMAs) to detect the market bias:

Short EMA: Represents immediate price action/momentum.

Medium EMA: Represents the intermediate trend.

Long EMA: Represents the major trend baseline.

Calculations & Logic

The indicator checks for a specific hierarchical alignment (Stacking) of these averages:

1. 🟢 Bullish Confluence (Buy Zone):** Returns true when `Short > Medium` AND `Medium >Long`. This confirms that momentum is rising across all three monitored timeframes.

2. 🔴 Bearish Confluence (Sell Zone):** Returns true when `Short < Medium` AND `Medium < Long`. This confirms that momentum is falling across all three monitored timeframes.

3. ⚪ Neutral (No Color): Any other state indicates a choppy or consolidating market where the EMAs are intertwined.

---

🚀 Key Features

*Visual Bias Confirmation: The background highlights Green (Bullish) or Red (Bearish) only when the "Perfect Stack" conditions are met.

Trend Start Alerts: Unlike standard EMA cross alerts, this script includes custom alert conditions that trigger only on the first bar where the confluence becomes valid. This prevents spam alerts during a prolonged trend.

Full Customization: Users can adjust the lengths of all three EMAs to fit specific strategies (e.g., Scalping vs. Swing Trading).

Clean Chart Mode: Includes options to hide the EMA lines entirely and rely solely on the background color for a minimalist "Naked Trading" setup.

🎯 How to Use

1. Trend Filter: Use the background color to determine your directional bias. If the background is Green, look only for Long setups on lower timeframes. If Red, look only for Short setups.

2. Breakout Confirmation: If price breaks a key level, wait for the background color to flip. This confirms that the Moving Averages have caught up to the move, validating the breakout strength.

3. Exit Signal: If you are in a trend trade and the background color disappears (turns transparent), it indicates the trend momentum is fading and the EMAs are beginning to cross/compress.

⚙️ Settings

EMA Lengths: Default is 20, 50, 100. These can be changed to common combinations like (9, 21, 55) or (50, 100, 200).

Visuals: Toggle lines or background colors on/off and adjust transparency to keep your chart readable.

---

Disclaimer: This script is for informational purposes only. Past performance of a trend following method does not guarantee future results. Always use proper risk management.