EMA Trend & Trigger Strategy

Summary of the EMA Trend & Trigger Strategy (Pine Script)
This Pine Script strategy is designed to trade based on Exponential Moving Averages (EMAs) on two different timeframes:

1D (Daily) → Identifies the overall trend.
1H (Hourly) → Generates trade signals based on shorter-term movements.
How It Works
1. Define EMA Lengths
Daily (1D) EMAs:
Short EMA: 5-period
Long EMA: 30-period
Hourly (1H) EMAs:
Short EMA: 12-period
Long EMA: 26-period
2. Calculate EMA Values
Uses request.security to fetch EMA values from both the daily (1D) and hourly (1H) timeframes.
3. Determine Trend Based on 1D EMAs
Uptrend: Short EMA (5) > Long EMA (30).
Downtrend: Short EMA (5) < Long EMA (30).
4. Generate Trade Signals (1H Crossover)
Buy Signal: Short EMA (12) crosses above Long EMA (26) AND the daily trend is up.
Sell Signal: Short EMA (12) crosses below Long EMA (26) AND the daily trend is down.
5. Volatility-Based Trade Triggers
High Volatility Uptrend: If the price rises by more than 5%, enter a long trade.
High Volatility Downtrend: If the price drops by more than 5%, enter a short trade.
6. Stop Loss Calculation
Long Trades: Stop loss at the lowest price in the last 10 bars.
Short Trades: Stop loss at the highest price in the last 10 bars.
7. Execute Trades
Enter Long: When a buy signal or high volatility uptrend occurs.
Exit Long: When the stop loss (localBottom) is hit.
Enter Short: When a sell signal or high volatility downtrend occurs.
Exit Short: When the stop loss (localPeak) is hit.
8. Plot EMAs on Chart
Blue: 1D Short EMA (5).
Red: 1D Long EMA (30).
Green: 1H Short EMA (12).
Orange: 1H Long EMA (26).
Key Takeaways
Combines trend-following and short-term crossovers for trade signals.
Filters trades based on volatility (5% price moves).
Uses stop-loss levels based on local highs/lows (last 10 bars).
Can trade both long and short positions.
This strategy is useful for momentum traders looking to follow trends while using a lower timeframe for precision entries. 🚀