OPEN-SOURCE SCRIPT
EMA 21/55/200 Market Quality Dashboard
EMA 21/55/200 Market Quality Dashboard
Overview
- EMA 21/55/200 Market Quality Dashboard is a professional trend-quality evaluation tool designed for trend-following traders.
- Instead of generating Buy or Sell signals, the indicator evaluates multiple independent market conditions before execution.
- The dashboard summarizes market quality in a structured format, allowing traders to understand why the current market is suitable—or unsuitable—for trend trading.
- The goal is to evaluate trend quality, not to predict future price movements.
Market Quality Modules
Trend Structure
- Determines the primary market trend using:
- EMA 21
- EMA 55
- EMA 200
- Classifies the market as:
- Bullish
- Bearish
- Transition
EMA Separation
- Measures the percentage distance between EMA 21 and EMA 55.
- Helps identify whether moving averages are expanding or compressed.
- Filters many sideways market conditions.
ADX Trend Strength
- Evaluates overall trend strength using ADX.
- Displays:
- ADX Value
- Trend Strength
- Rising / Falling Direction
- The ADX filter can be enabled or disabled independently.
EMA Momentum
- Measures the percentage rate of change of EMA 21.
- Confirms whether momentum is aligned with the current trend.
- Filters situations where momentum conflicts with the trend direction.
ATR Volatility
- Evaluates current market volatility.
- ATR is classified into three states:
- Expanding
- Stable
- Contracting
- For trend-following markets:
- Expanding → PASS
- Stable → PASS
- Contracting → BLOCK
Market Score
- Every module contributes to a weighted Market Score.
- Market Score ranges from 0–100.
- The score ranks market quality only.
- It does not generate trading signals.
Suggested interpretation:
- 80–100 → Very Good
- 65–79 → Good
- 50–64 → Average
- Below 50 → Weak
Dashboard Philosophy
The dashboard separates market information into two independent concepts.
State
Describes the current market condition.
Examples:
- Bullish Trend
- Strong ADX
- Expanding ATR
- Positive Momentum
Filter
Shows whether each module satisfies the trading requirements.
Possible results:
- PASS
- BLOCK
- FILTER OFF
This separation allows traders to identify exactly which condition prevents a trade instead of relying on a simple Buy or Sell signal.
HTF Simulation
- Supports optional HTF Simulation.
- Uses proportional indicator-length scaling to approximate higher-timeframe behaviour.
- Does not use request.security().
- Designed to provide a smoother trend representation while remaining on the current chart.
Best Used With
This indicator is designed to complement discretionary trading methods, including:
- Market Structure
- Price Action
- Support & Resistance
- Supply & Demand
- Order Blocks
- Pullbacks
- Liquidity Concepts
- Risk Management
How to Use
Look for Long opportunities when:
- EMA 21 > EMA 55 > EMA 200
- EMA Separation = PASS
- ADX Filter = PASS
- EMA Momentum is aligned with the bullish trend
- ATR is Expanding or Stable
- Market Score is preferably above 80
Look for Short opportunities when:
- EMA 21 < EMA 55 < EMA 200
- EMA Separation = PASS
- ADX Filter = PASS
- EMA Momentum is aligned with the bearish trend
- ATR is Expanding or Stable
- Market Score is preferably above 80
Important Notes
- This indicator is a Market Quality Filter, not an entry signal.
- It should always be combined with Market Structure and Price Action analysis.
- Market Score is designed to rank trend quality and should never be interpreted as a Buy or Sell signal.
- HTF Simulation is a length-scaling approximation and is not equivalent to higher-timeframe calculations using request.security().
- The dashboard is intended to help traders evaluate market conditions before execution, rather than automate trading decisions.
Overview
- EMA 21/55/200 Market Quality Dashboard is a professional trend-quality evaluation tool designed for trend-following traders.
- Instead of generating Buy or Sell signals, the indicator evaluates multiple independent market conditions before execution.
- The dashboard summarizes market quality in a structured format, allowing traders to understand why the current market is suitable—or unsuitable—for trend trading.
- The goal is to evaluate trend quality, not to predict future price movements.
Market Quality Modules
Trend Structure
- Determines the primary market trend using:
- EMA 21
- EMA 55
- EMA 200
- Classifies the market as:
- Bullish
- Bearish
- Transition
EMA Separation
- Measures the percentage distance between EMA 21 and EMA 55.
- Helps identify whether moving averages are expanding or compressed.
- Filters many sideways market conditions.
ADX Trend Strength
- Evaluates overall trend strength using ADX.
- Displays:
- ADX Value
- Trend Strength
- Rising / Falling Direction
- The ADX filter can be enabled or disabled independently.
EMA Momentum
- Measures the percentage rate of change of EMA 21.
- Confirms whether momentum is aligned with the current trend.
- Filters situations where momentum conflicts with the trend direction.
ATR Volatility
- Evaluates current market volatility.
- ATR is classified into three states:
- Expanding
- Stable
- Contracting
- For trend-following markets:
- Expanding → PASS
- Stable → PASS
- Contracting → BLOCK
Market Score
- Every module contributes to a weighted Market Score.
- Market Score ranges from 0–100.
- The score ranks market quality only.
- It does not generate trading signals.
Suggested interpretation:
- 80–100 → Very Good
- 65–79 → Good
- 50–64 → Average
- Below 50 → Weak
Dashboard Philosophy
The dashboard separates market information into two independent concepts.
State
Describes the current market condition.
Examples:
- Bullish Trend
- Strong ADX
- Expanding ATR
- Positive Momentum
Filter
Shows whether each module satisfies the trading requirements.
Possible results:
- PASS
- BLOCK
- FILTER OFF
This separation allows traders to identify exactly which condition prevents a trade instead of relying on a simple Buy or Sell signal.
HTF Simulation
- Supports optional HTF Simulation.
- Uses proportional indicator-length scaling to approximate higher-timeframe behaviour.
- Does not use request.security().
- Designed to provide a smoother trend representation while remaining on the current chart.
Best Used With
This indicator is designed to complement discretionary trading methods, including:
- Market Structure
- Price Action
- Support & Resistance
- Supply & Demand
- Order Blocks
- Pullbacks
- Liquidity Concepts
- Risk Management
How to Use
Look for Long opportunities when:
- EMA 21 > EMA 55 > EMA 200
- EMA Separation = PASS
- ADX Filter = PASS
- EMA Momentum is aligned with the bullish trend
- ATR is Expanding or Stable
- Market Score is preferably above 80
Look for Short opportunities when:
- EMA 21 < EMA 55 < EMA 200
- EMA Separation = PASS
- ADX Filter = PASS
- EMA Momentum is aligned with the bearish trend
- ATR is Expanding or Stable
- Market Score is preferably above 80
Important Notes
- This indicator is a Market Quality Filter, not an entry signal.
- It should always be combined with Market Structure and Price Action analysis.
- Market Score is designed to rank trend quality and should never be interpreted as a Buy or Sell signal.
- HTF Simulation is a length-scaling approximation and is not equivalent to higher-timeframe calculations using request.security().
- The dashboard is intended to help traders evaluate market conditions before execution, rather than automate trading decisions.
Open-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.
Open-source script
In true PulseWire spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by PulseWire. Read more in the Terms of Use.