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.
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.