EMA Separation Coefficient reflects the separation between short-term and long-term exponential moving average trend resistance, as well as the direction of the current movement. Pay attention to potential crossover points when the coefficient approaches zero, this may indicate an upcoming breakout or reversal. Wait for confirmation of the trend before entering the trade, and exit when the coefficient forms a max (for calls) or a min (for puts).
This is a small tool to help visualize the difference between long and short period averages. We hope you enjoy!
EMA Separation Coefficient can also be paired with our free EMA Separation indicator
Parameters
- Short period (Default=10): # bars used to calculate short period EMA
- Long period (Default=50): # bars used to calculate long period EMA
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