Dual EMA Trend Crossover Indicator

Overview The Dual EMA Trend Crossover is a classic trend-following indicator designed to identify shifts in market momentum and trend direction. By utilizing two Exponential Moving Averages (EMAs) with different periods, this script helps traders visualize the prevailing trend and spot potential entry points through crossover signals.

This tool is highly effective for capturing medium to long-term trends in trending assets like Index Futures, Commodities, and Crypto.

How It Works The strategy relies on the interaction between a Fast EMA (shorter period) and a Slow EMA (longer period):

Bullish Trend: When the Fast EMA is above the Slow EMA, the background/cloud is highlighted (typically Green) to indicate an uptrend.

Bearish Trend: When the Fast EMA is below the Slow EMA, the background/cloud is highlighted (typically Red) to indicate a downtrend.

Signals: Crossovers serve as the trigger points. A "Golden Cross" signals a potential long entry, while a "Death Cross" signals a potential short entry.

Trading Logic

Long Signal (Buy): Triggered when the Fast EMA crosses over the Slow EMA.

Short Signal (Sell): Triggered when the Fast EMA crosses under the Slow EMA.

Trend Filter: The gap between the two EMAs serves as a visual "Trend Cloud," helping traders avoid choppy markets when the lines are flat or frequently crossing.

Default Settings

Fast EMA Length: 12 (Adjustable)

Slow EMA Length: 26 (Adjustable)

Source: Close price

Disclaimer This indicator is for educational purposes. Moving average crossovers are lagging indicators and work best in strong trending markets. Whipsaws may occur in sideways or ranging markets. Please combine with other indicators or price action analysis for best results.