EMA Volume Confluence
- Indicators
- John Mazzarella
- Version: 1.0
- Activations: 5
EMA Volume Confluence Indicator - Overview
What It Does:
This is a multi-timeframe momentum indicator that combines trend following, volume analysis, and volatility bands to identify high-probability trade setups.
Core Components:
- EMA 7 (Blue) - Fast trend line
- EMA 21 (Orange) - Slow trend line
- VWAP (Purple) - Volume-weighted average price (institutional level)
- ATR Bands (Red/Green) - Volatility channel around EMA 21
- Info Panel - Real-time metrics (RSI, volume ratio, trend, positions)
Signal Logic:
- LONG = EMA 7 crosses above EMA 21 + Volume spike + Price above VWAP + RSI not overbought
- SHORT = EMA 7 crosses below EMA 21 + Volume spike + Price below VWAP + RSI not oversold
The indicator filters out weak moves by requiring volume confirmation - only signals when volume is 1.5x the 20-bar average, ensuring institutional participation.
Recommended Settings by Trading Style:
🎯 Scalping (M1-M5 charts)
EmaFast = 5 EmaSlow = 13 VolumeMultiplier = 2.0 // Need stronger volume confirmation VolumeAvgLength = 14 BandMultiplier = 1.0 // Tighter bands RsiLength = 9 // More responsive
📊 Day Trading (M15-H1 charts) ⭐ Most Popular
EmaFast = 7 EmaSlow = 21 VolumeMultiplier = 1.5 VolumeAvgLength = 20 BandMultiplier = 1.5 RsiLength = 14
📈 Swing Trading (H4-D1 charts)
EmaFast = 9 EmaSlow = 26 VolumeMultiplier = 1.3 // Slightly lower threshold VolumeAvgLength = 25 BandMultiplier = 2.0 // Wider bands for volatility RsiLength = 14
🔥 Aggressive/Crypto (High volatility)
EmaFast = 7 EmaSlow = 21 VolumeMultiplier = 2.5 // Much stronger volume needed VolumeAvgLength = 14 BandMultiplier = 1.2 RsiLength = 14
Key Tips:
- Volume Multiplier - Higher = fewer but higher quality signals
- Band Multiplier - Adjust based on market volatility (0.5-3.0 range)
- VWAP - Acts as magnet; price tends to revert to it
- Best Markets - Works well on trending pairs (EUR/USD, GBP/USD) and major indices
- Avoid - Low volume periods (Asian session for forex) and ranging markets
The default settings (7/21 EMAs, 1.5x volume) work well for most intraday trading on 15min-1H timeframes. Start there and adjust based on your backtesting results!
What problems are you seeing? I'm ready to address them! 😊