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.