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