Overview

The EMA25 Strategy is one of Volensy’s most straightforward yet effective indicators. Built around a single 25-period Exponential Moving Average, it provides clean trend detection signals without the noise that comes from stacking multiple complex calculations. If you value clarity and speed in your trading decisions, this indicator is an excellent starting point.

EMA25 is particularly well suited for volatile crypto assets such as ETH, BNB, and ARB, where strong directional moves develop quickly and a responsive moving average can capture them early. The indicator works best on 15-minute to 1-hour timeframes, striking a balance between signal frequency and reliability.

This is a free indicator, meaning anyone with a TradingView account can add it to their charts without a Volensy membership.

How It Works

The core logic is built on the relationship between price and a 25-period Exponential Moving Average. The EMA25 reacts faster than a simple moving average of the same length because it gives more weight to recent price data, making it ideal for catching momentum shifts on volatile assets.

Signal Generation

  • LONG signal — Triggered when the price crosses above the EMA25 line. This suggests bullish momentum is building and the trend is shifting upward.
  • SHORT signal — Triggered when the price crosses below the EMA25 line. This indicates bearish pressure is taking over and the trend is turning downward.

Once a signal fires, the indicator activates the multi-stage Take Profit and Stop Loss system. Entry price is recorded at the moment of the crossover, and all TP and SL levels are calculated from that entry.

Multi-Stage Profit Taking

Like all Volensy indicators, EMA25 uses a three-tier take profit structure:

  • TP1 — 0.5% from entry (partial profit lock)
  • TP2 — 1.0% from entry (moderate target)
  • TP3 — 1.5% from entry (full target)

The Stop Loss is fixed at 2% from entry, providing a clear risk boundary for every trade.

Bar Coloring

The indicator colors chart bars based on the current signal direction. Green-tinted bars appear during active LONG signals, and red-tinted bars appear during active SHORT signals. This gives you an immediate visual read on the prevailing trend without needing to check the info panel.

Key Features

  • Single EMA simplicity — One moving average, one clear signal logic. No conflicting sub-indicators to interpret.
  • Visual emoji labels — LONG and SHORT signals are displayed directly on the chart with clear emoji-style labels, making them impossible to miss.
  • Real-time info panel — A floating panel on the chart displays current entry price, trade duration, PnL percentage, success rate, and signal status.
  • Multi-level TP/SL — Three take profit targets and a fixed stop loss built into every signal.
  • Bar coloring — Candlesticks change color to match the active signal direction.
  • Configurable alerts — Set TradingView alerts for LONG entries, SHORT entries, TP hits, and SL triggers.
  • Multi-market compatibility — Works on crypto, forex, stocks, and commodities.

Configuration / Settings

When you add the EMA25 indicator to your chart, you can adjust the following parameters in the settings panel:

| Parameter | Default | Description |
|———–|———|————-|
| EMA Length | 25 | The period length for the Exponential Moving Average. Shorter values react faster but may produce more false signals. Longer values smooth out noise but lag behind price. |
| TP1 Level | 0.5% | First take profit target as a percentage from entry price. |
| TP2 Level | 1.0% | Second take profit target. |
| TP3 Level | 1.5% | Third and final take profit target. |
| Stop Loss | 2.0% | Maximum loss allowed before the trade is closed. |
| Show Info Panel | On | Toggle the real-time stats panel on or off. |
| Show Bar Colors | On | Toggle candlestick coloring based on signal direction. |
| Show Labels | On | Toggle LONG/SHORT emoji labels on the chart. |

Note: The default settings are calibrated for 15-minute to 1-hour charts on volatile crypto pairs. If you switch to a calmer market like forex majors or large-cap stocks, consider increasing the EMA length to 30 or 35 to reduce false signals.

Trading Signals

LONG Signal

A green LONG label appears on the chart when price closes above the EMA25 line. This means:

  • Bullish momentum is detected.
  • Entry price is locked at the signal candle’s close.
  • TP1, TP2, TP3, and SL levels are calculated and tracked.
  • The info panel begins displaying real-time PnL and trade duration.

SHORT Signal

A red SHORT label appears when price closes below the EMA25 line. This means:

  • Bearish momentum is detected.
  • Entry price is locked at the signal candle’s close.
  • All TP and SL levels are recalculated for the short direction.
  • The info panel updates to reflect the new position.

Signal Resolution

Each signal remains active until one of the following occurs:

  1. A take profit level is hit (TP1, TP2, or TP3).
  2. The stop loss is triggered.
  3. A new signal in the opposite direction fires, replacing the current trade.

The info panel tracks each outcome and updates the cumulative success rate accordingly.

Best Practices

Recommended Markets

  • Crypto (primary) — ETH/USDT, BNB/USDT, ARB/USDT, SOL/USDT. The EMA25 excels on assets with strong intraday volatility.
  • Forex — Works on major pairs like EUR/USD and GBP/USD, but consider using a slightly longer EMA (30-35) due to lower volatility.
  • Stocks — Effective on mid-cap and small-cap stocks with high daily volume. Less effective on slow-moving blue chips.

Recommended Timeframes

  • 15-minute — Best for active day trading with frequent signals.
  • 30-minute — A balanced middle ground for those who want fewer but more reliable signals.
  • 1-hour — Suitable for swing-style intraday trading with higher confidence per signal.
Warning: Avoid using EMA25 on timeframes below 5 minutes. The signal frequency increases dramatically and false signals become more common due to market noise.

Tips

  1. Combine with volume — If a LONG signal fires on a candle with above-average volume, it carries more conviction. Low-volume crossovers are more likely to reverse.
  2. Respect the stop loss — The 2% SL is there for a reason. Do not move it or ignore it. Consistent risk management is what makes this strategy profitable over time.
  3. Use TP1 to lock partial profits — Consider taking a portion of your position off at TP1 (0.5%) and letting the rest ride toward TP2 and TP3.
  4. Avoid ranging markets — When price is chopping sideways around the EMA25, you will see frequent crossovers in both directions. These are typically false signals. Wait for a clear directional move before trusting the next signal.

Related Documentation

*See also: Indicators Overview*
*See also: Understanding the TP/SL System*
*See also: Using the Info Panel*
*See also: Kenneth EMA Crossover* — Another EMA-based strategy with a dual-EMA approach.
*See also: Indicator Comparison Guide*

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