Custom Indicator Strategy Analysis | EMA Long Positions Resonance Capturing Trend Starting Points

In the rapidly changing crypto market, accurately identifying trend initiation nodes is key to outperforming the market. In this issue, we analyze the EMA long positions resonance strategy based on a custom indicator system, helping users seize opportunities faster and more steadily in trending markets.

1. Strategy Principle Analysis: What is EMA Long Position Resonance?

2. What is EMA?

EMA (Exponential Moving Average) is a weighted moving average that places greater emphasis on the latest price fluctuations compared to the regular SMA (Simple Moving Average). This makes EMA more sensitive to trend capture in highly volatile assets like cryptocurrencies.

2. How to determine the trend from EMA?

Long positions signal (Golden Cross):

The price crosses above the EMA, that is, the price golden crosses the EMA, releasing a bullish signal;

When the short-term EMA (such as EMA5) crosses above the long-term EMA (such as EMA10), it indicates that the buying opportunity is approaching.

Bearish signal (death cross):

The price crosses below the EMA, which is a dead cross of the EMA, releasing a bearish signal;

The short-term EMA crosses below the long-term EMA, indicating a sell or avoidance of risk.

3. What is long positions resonance?

EMA is an important tool for observing changes in market trends from short-term to long-term. A single EMA allows us to simply focus on the trend, but the combination of multiple EMAs can improve the reliability of trend judgment.

When multiple EMA lines (such as short-term, medium-term, and long-term moving averages) emit a consistent signal together, it is referred to as "resonance," indicating that the market trend signal is more certain.

3.1 Long positions resonance signal (buy signal)

Multiple EMAs are in a "long positions arrangement" state: short-term EMA > mid-term EMA > long-term EMA

3.2 Long Positions Resonance Signal (Sell/Close Long Signal)

3.1 When any condition in the long positions resonance is not met, this resonance will end. You can exit this position.

Typical resonance structure:

EMA(5) > EMA(20) > EMA(40) > EMA(60) > EMA(120)

The shorter the EMA cycle, the higher it is positioned, indicating that the price is in a stable upward channel.

EMA shows a divergence state, indicating a strong trend and clear momentum.

2. Strategy Effect Testing: BTC Live Trading Diagram

(Image: OKX-BTCUSDT perpetual contract daily cycle) Signal Description:

Green solid upward arrow: Long positions resonance starts (entry signal)

Green hollow downward arrow: long positions resonance termination (exit signal)

By combining the EMA long positions resonance signals, we can clearly identify the starting and ending nodes of trends, effectively avoiding false fluctuations within the oscillation range.

3. Strategy for Selecting Coins in Practice: From Indicators to Real Trading

Users can filter potential explosive coins through AiCoin's "Custom Indicators/Backtesting/Live Trading - Indicator Coin Selection" feature.

Recommended conditions for selecting coins:

Market Cap: Top 100

Transaction Volume: 24H ≥ 100 million USDT

Period: 4H

Coin selection evaluation: All selected coins are from the early stage of launch.

Example analysis:

(PENGU: Initial formation of long positions, in the process of starting)

(SUI: After the pullback, it first forms long positions, belonging to the pullback counterattack initiation stage)

The selected cryptocurrencies are often in the "low-level launch" or "pullback confirmation" stage, indicating a good risk-reward ratio.

4. Usage suggestions: When to use and when not to use?

Recommended usage scenario: During the trend market initiation phase.

It can enhance the effectiveness of signals by combining favorable news or macro expectations.

For example: Federal Reserve interest rate cuts, relaxation of regulatory policies, political figures (such as Trump) supporting encryption, etc.

Get message suggestions:

Check AiCoin news to seize sudden information

Pay attention to the AiCoin event calendar to layout potential market trends in advance.

Check the AiCoin hot list to find the market focus.

Not recommended usage scenario: during sideways oscillation market.

Moving averages entangled, easily triggering a large number of false signals.

Causing transaction fee erosion and emotional fatigue

5. Open Source Strategy: Suitable for advanced users to customize

// @version=2

ma1 = ema(close, 10)

ma2 = ema(close, 20)

ma3 = ema(close, 40)

ma4 = ema(close, 60)

ma5 = ema(close, 120)

// Calculate ema long positions

maLong = ma1 > ma2 && ma2 > ma3 && ma3 > ma4 && ma4 > ma5

// Start long positions arrangement

longStart = maLong && (not maLong[1])

// End of long positions arrangement

longEnd = (not maLong) && maLong[1]

// Define alert conditions for use in the alert addition window.

alertcondition(longStart, title='EMA long positions alignment starts', direction="buy")

alertcondition(longEnd, title='EMA long positions arrangement ends', direction="sell")

// Draw to the chart

plot(ma1, title ="EMA10")

plot(ma2, title ="EMA20")

plot(ma3, title ="EMA40")

plot(ma4, title ="EMA60")

plot(ma5, title ="EMA120")

// plot(ma6, title ="EMA250")

plotShape(longStart, title="EMA long positions alignment starts", shape='arrowUp', color='green', refSeries=ma3, placement='bottom', fill=true)

plotShape(longEnd, title="EMA long positions arrangement ends", shape='arrowDown', color='green', refSeries=ma3, placement='top', fill=false)

// Open long positions and close long positions

exitLong(longEnd, price='market', amount=1)

enterLong(longStart, price='market', amount=1)

6. Conclusion: How to efficiently utilize from strategy to application?

EMA long positions resonance is a classic trend-following strategy, especially suitable for phases of clear trends in the market. During the application process, it is recommended to combine news, hot data, and other technical indicators to improve judgment accuracy:

Practical points:

When the trend is clear: combine event-driven strategies to amplify profits.

During sideways consolidation: avoid frequent entry and exit to reduce trading noise.

This strategy is suitable for medium to short-term traders or trend investors as a "timing tool" to help seize the startup signals, avoid high-frequency misjudgments, and achieve more stable trading performance.

To call this strategy with one click, feel free to use 【AiCoin - Custom Indicator Module】, which supports signal stacking, live push notifications, coin selection backtesting, and many other professional features.

Professional tools combined with strategies truly achieve the unity of knowledge and action.