This Pine Script code builds an indicator called EMA Crossover with Historical Price Projection that combines two components:
EMA Crossover Strategy:
EMA 9 and EMA 21: The script calculates two exponential moving averages (EMAs) using the ta.ema() function. The crossover between these EMAs generates buy/sell signals. A bullish crossover (when EMA 9 crosses above EMA 21) signals a buy. A bearish crossover (when EMA 9 crosses below EMA 21) signals a sell. These buy/sell signals are visualized on the chart using the plotshape() function with green and red symbols. Historical Price Projection:
The code projects future prices based on historical price trends. It takes into account growth factors (user-defined drift percentages) to estimate future prices. Projection Line: It draws a projection line from the anchor point (set by the user) using historical data. The drift factor allows you to control the projection's slope. Forecasting Area: It shows an optional area around the projected price, adjusting the width with a user-defined growth factor for the forecast's uncertainty. Key Sections: Inputs:
User-defined inputs for controlling the growth factor, line styles, and forecasting area settings. An anchoring point is provided to determine from which bar the price projection should start. EMA Crossover:
The crossover conditions for EMA 9 and EMA 21 are defined, and the script generates buy and sell signals at those crossovers. Historical Price Projection:
It stores the percentage changes between bars in barDeltaPercents. It projects the future price based on these percentages and the user-defined drift factor. The projected price is visualized using polyline.new(), and a shaded area can be added to show the range of price possibilities. Execution Logic:
The script runs when the current time is greater than the anchor point. If the anchor point is too far back in history, it gives a warning via the showInfoPanel function. As new bars are confirmed, the drift is calculated, and the projection line and area are updated based on historical price changes. Overall Flow: It gathers price data up to 500 bars from the anchor point. Based on the historical price trend, it forecasts the future price with a projection line and an optional shaded area. The crossover logic for EMA 9 and 21 provides actionable signals on when to buy or sell.
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