EP Trend Heatmap MTF is an indicator that reflects the dominant trend in a total of 9 timeframes.

These timeframes are configurable.

By default, two fast timeframes (5 and 15 min) and 7 timeframes of higher temporalities are shown (30m, 1H, 2H, 4H, 8H, 12H and 1D).

The first two timeframes can be used to fit inputs into very small time frames.

 


The colors indicate:

  • green: buying trend
  • red: selling trend
  • gray: neutral or undefined trend
  • aqua: converging long averages (emaLTC rising below emaLTD)
  • teal: converging long averages and buying trend

 

"CLEAR SKY" PATTERN

The indicator is very effective in detecting the recovery of the price after a fall. In these cases, it will show bluish colors (aqua and teal) in the lower timeframes, while the red colors give way to neutral and green colors in the higher ones, in a staggered way.

 

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Patrón "Cielo despejado": Colores azulados en TF bajos, ausencia de rojo en TF altos

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Patrón "Cielo despejado": Colores azulados en TF bajos, ausencia de rojo en TF altos

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Patrón "Cielo despejado": Colores azulados en TF bajos, ausencia de rojo en TF altos

 

"GREEN WALL" PATTERN

During a strong uptrend, we will see all the timeframes in green, except in the breaks that the price makes, where we will wait for the red colors in lower timeframes to give way to the neutral color and the subsequent green.

When the top 7 timeframes turn green ("green wall" pattern) it will be a good time to buy.

 

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El patrón "cielo despejado" será más efectivo tras una caída

Durante una fuerte tendencia de subida,

usaremos el patrón "pared verde" para incorporarnos a la misma

 

USE WITH OTHER INDICATORS

The indicator uses a total of 10 configurable averages.

It is based on the same means as the indicator EP Prism v2.0 , so we recommend using them together, which will improve the precision of the latter's input signals.

The indicator can be used as a support for any strategy, confirming entry zones and thus avoiding risky entries.

 

In the graphic below, we see it working together with EP PRISM v2.1. Try to identify the two patterns that we have learned, and look at the calls to buy from EP Prism.

 

 

We see that the EP Prism indicator has a high hit rate in its calls to buy. However, we can see an area of the chart where EP Trend Heatmap shows too much "uncertainty" showing flashing reds that should keep us away from buy or sell positions. The position of the EP Prism stockings also does not invite purchase.

 

EP Prism is an indicator based on moving averages, but it also takes into account the position of other indicators, such as EP Zenith, EP Elephant or EP Keeper, coloring its background to show certain situations that appear in these indicators.

EP Prism displays buy and sell alerts, configurable for the most common TimeFrames. This allows its effectiveness to be consistent on any chart, even minute or second charts.

It also shows 10 averages, equally configurable. By default, it shows averages of 9,21,50,70,100,150,300,400,600 and 2500 periods, which allows us to have an overview of the price trend in the short, medium and long term.

 

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What do its colors mean?

1.- Long-term trend.

Color light green when the trend is bullish, and light red when it is bearish. We can choose whether or not to show these background colors.

2.- Short-term trends.

During an uptrend, we can see orange colors in the background, indicating a correction. Often they are followed by a green or blue area, trying to show the end of that correction. During the start of a trend, these are usually good entry times.

After a fall, the indicator will show a blue color in areas of possible reversal. These zones reflect the EP Trend HeatMap "clear sky" pattern: long averages converging to the upside in lower timeframes and absence of selling pressure in higher timeframes. These areas are usually very good opportunities to enter safely long positions.

We can choose whether or not to show these colors.

3.- Convergence of long averages.

When the LTC average (600 periods) is below the LTD (2500 periods) and rises approaching it, the space between them is colored cyan. It can be a sign of reversal of a downtrend.

On the contrary, when the LTC average is above the LTD and descends, converging with it, the space between them is colored red, also indicating a possible change in trend.
During an upward trend, small "breaks" in the trend are frequent, producing price corrections, which if deep enough will color the space between these two averages red. We must be attentive to a buy signal in this situation, as it may be the best time to join the trend.

4.- Relative position of the averages.

When the averages are rising in an orderly manner, we can see that the space between the averages is colored green. When the fastest averages fall below the averages of intermediate periods, we will see purple colors, or red if the averages fall in formation and in reverse order, showing a strong fall.

 

Can alerts be scheduled?


You can create alerts in TradingView based on EP Prisma Buy and/or Sell signals.
Just click on an EP Prisma signal and select "Add Alert in EP Prisma" from the pop-up menu. The alert dialog will appear with the "Buy" signal selected. You can choose "Sell" or "Buy or Sell". It only remains to click on the "Create" button, unless you want to change any of the options.

Can I use this indicator in conjunction with other indicators?


Of course. What's more, we highly recommend it. Make your study of the price, take into account support and resistance levels, consult your reference indicators.

We recommend using the indicator together with EP ELEPHANT, EP-KEEPER and also EP Trend Heatmap. We invite you to watch the video on how to filter calls from EP Prisma with other EP indicators.

 

EP Keeper is a trend indicator, showing the relationship between two configurable averages in different periods.

These averages are smoothed to avoid the "noise" of the price, facilitating the visualization of the movement of the asset.

The areas between the two averages are colored in different colors to make them even easier to read.

 

It can be configured with different periods so that the indicator shows the trend in the short, medium or long term. In fact, we have split the indicator into three (EP Keeper, EP Keeper LT and EP Keeper XLT) with the default settings that we understand give more useful information.

 

The configuration of EP Keeper helps us to reflect the faster movements of the price. They will help us fine-tune the input to the maximum. Keeper LT shows us the medium-term trend and EP Keeper XLT gives us a vision of the very long-term trend. Trading with all three settings in sight we get a very quick view of how the price is moving.

 

Apart from the averages, the indicator draws a horizontal line (line 0), four upper lines (max A, max B, max C and max D) and four lower lines (min A, min B, min C and min D) . These lines are calculated based on the highs and lows that the averages have made in the last 1000 candles (this value is configurable).

 

The objective of these lines is to give an idea of ​​the "depth" of the movements or what is the same, the volatility of the price.

 

The indicator gives us several signals:

1.- We call "bottom pattern" to the recovery of the keeper averages below line 0 (the indicator is colored yellow). We will be aware of this situation to look for entries, as long as the other keeper configurations also show us signs of recovery.

2.- We call the recovery of the keeper media above line 0 "valley" (the indicator remains colored green).

 

The indicator shows several tradable patterns, with high probability of success. These are some:

 

1.- Unique bottom in an upward trend. In a general uptrend there is a bottom in the keeper.

2.- Shoulder-Head-Shoulder. Three bottoms are displayed, the first two declining and the third highest.

3.- Double divergent bottom. Two funds follow one another, the second of them higher.

 

 

In general, the purchase operation would be:

1.- Observe the situation of keeper LT and keeper XLT. They must be recovering (bottom pattern) or already above min A (the indicator is colored green).

2.- Observe the keeper situation. We will always look for the background pattern to enter. A "deep" bottom, which occurs below the last line of the lows (min D), indicates a strong rebound movement, as long as the lines of the lows show quite a distance from each other.

3.- Be aware of the highest lows: the bottom pattern (or valley, if we are already in an uptrend) occurs at a higher height than the previous one.

4.- The operation for sales (or closing of long operations) will be the reverse: the fastest average turns downwards in the guardian (if we are in an intraday or fast operation, if we are maintaining a longer-term operation, we we will fix on Keeper LT).

5.- Be aware also of divergences. Keeper displays price divergences especially well by giving us long or short entry signals, depending on the asset's price action.

 

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