Ease of MovementThis indicator provides an implementation of the Ease of Movement
(EOM) indicator, enhanced with a built-in divergence detection
engine.
The EOM highlights the relationship between volume and price change.
High positive values indicate that the price is increasing with
low resistance (ease), while low negative values indicate the
price is dropping with ease.
Key Features:
1. **Full Divergence Suite (Class A, B, C):** The primary feature
is the integrated divergence engine. It automatically
detects and plots all three major types of divergences:
- Regular (A): Signals potential trend reversals (e.g., price
rising but "ease" of movement is diminishing).
- Hidden (B): Signals potential trend continuations.
- Exaggerated (C): Signals weakness at double tops/bottoms.
2. **Divergence Filtering and Visualization:**
- **Price Tolerance Filter:** Divergence detection is enhanced
with a percentage-based price tolerance (`pivPrcTol`) to
filter out insignificant market noise, leading to more
robust signals.
- **Persistent Visualization:** Divergence markers are plotted
for the entire duration of the signal and are visually
anchored to the EOM level of the confirming pivot.
- **Flexible Pivot Algorithms:** Supports various underlying
mathematical models for pivot detection provided by the
core library
3. **Customizable Signal Line:** Includes an optional moving average
of the EOM, which serves as a signal line. The type of
MA (`Signal Smoothing`) and its length can be customized.
This signal line can also be optionally volume-weighted
(`Volume weighted`).
4. **Note on Confirmation (Lag):** Divergence signals rely on a
pivot confirmation method to ensure they do not repaint.
- The **Start** of a divergence is only detected *after* the
confirming pivot is fully formed (a delay based on
`Pivot Right Bars`).
- The **End** of a divergence is detected either instantly
(if the signal is invalidated by price action) or with
a delay (when a new, non-divergent pivot is confirmed).
5. **Multi-Timeframe (MTF) Capability:**
- **MTF EOM & Signal Lines:** The EOM and its signal line
can be calculated on a higher timeframe, with standard
options to handle gaps (`Fill Gaps`) and prevent
repainting (`Wait for...`).
- **Limitation:** The Divergence detection engine (`pivDiv`)
is **disabled** if a timeframe other than the chart's
timeframe is selected. Divergences are only calculated
on the active chart timeframe.
6. **Integrated Alerts:** Includes comprehensive alerts for:
- The *start* and *end* of all divergence types.
- The EOM crossing its signal line.
- The EOM crossing the zero line.
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**DISCLAIMER**
1. **For Informational/Educational Use Only:** This indicator is
provided for informational and educational purposes only. It does
not constitute financial, investment, or trading advice, nor is
it a recommendation to buy or sell any asset.
2. **Use at Your Own Risk:** All trading decisions you make based on
the information or signals generated by this indicator are made
solely at your own risk.
3. **No Guarantee of Performance:** Past performance is not an
indicator of future results. The author makes no guarantee
regarding the accuracy of the signals or future profitability.
4. **No Liability:** The author shall not be held liable for any
financial losses or damages incurred directly or indirectly from
the use of this indicator.
5. **Signals Are Not Recommendations:** The alerts and visual signals
(e.g., crossovers) generated by this tool are not direct
recommendations to buy or sell. They are technical observations
for your own analysis and consideration.
Chỉ báo Pine Script®
