Well Defined EMA Script

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-- SPDX-License-Identifier: MIT
-- IQOptionWiki QCS Library
-- IQOW Well Defined EMA v1.0.0
--
-- Two EMAs (20 and 50), as in the related article. After the fast EMA crosses
-- the slow EMA, the script waits for the first pullback of price to the fast EMA
-- and marks the candle that touches it and closes back in the trend direction.
--
-- HIGHER: after EMA 20 crossed above EMA 50, the first candle that touches EMA 20
--         with its low closes bullish above EMA 20 (EMA 20 still above EMA 50).
-- LOWER:  after EMA 20 crossed below EMA 50, the first candle that touches EMA 20
--         with its high closes bearish below EMA 20 (EMA 20 still below EMA 50).
--
-- Markers use the previous completed candle: they appear after the next candle
-- opens and are shifted back one bar onto the candle that qualified.
-- Educational chart tool only. It does not place trades, choose an expiry,
-- predict outcomes, or guarantee results. Test on a Practice balance first.

instrument {
    name = "IQOW Well Defined EMA",
    short_name = "IQOW EMA PB",
    overlay = true
}

input_group {
    "1. Exponential moving averages",
    fast_period = input (20, "Fast EMA period", input.integer, 2, 100),
    slow_period = input (50, "Slow EMA period", input.integer, 3, 300)
}

input_group {
    "Display and advice",
    averages_visible = input { default = true, type = input.plot_visibility },
    signals_visible = input { default = true, type = input.plot_visibility },
    advice_enabled = input { default = false, name = "Enable platform advice", type = input.boolean }
}

input_group {
    "Colors",
    fast_color = input { default = "#FFD166", type = input.color },
    slow_color = input { default = "#56CEFF", type = input.color },
    average_width = input { default = 2, type = input.line_width },
    higher_color = input { default = "#25E154", type = input.color },
    lower_color = input { default = "#FF6C58", type = input.color },
    signal_text_color = input { default = "#FFFFFF", type = input.color }
}

fast_ema = ema (close, fast_period)
slow_ema = ema (close, slow_period)

local fast_now = get_value (fast_ema, nil)
local slow_now = get_value (slow_ema, nil)
local fast_previous = get_value (fast_ema [1], nil)
local slow_previous = get_value (slow_ema [1], nil)
local close_now = get_value (close, nil)
local open_now = get_value (open, nil)
local high_now = get_value (high, nil)
local low_now = get_value (low, nil)

local periods_are_valid = fast_period < slow_period

local data_is_ready =
    periods_are_valid and
    get_value (close [slow_period], nil) ~= nil and
    fast_now ~= nil and
    slow_now ~= nil and
    fast_previous ~= nil and
    slow_previous ~= nil and
    close_now ~= nil and
    open_now ~= nil and
    high_now ~= nil and
    low_now ~= nil

-- Event: the fast EMA crosses the slow EMA.
local crosses_up = data_is_ready and fast_previous <= slow_previous and fast_now > slow_now
local crosses_down = data_is_ready and fast_previous >= slow_previous and fast_now < slow_now

-- A candle touches the fast EMA when its range reaches the line.
local touches_fast = data_is_ready and low_now <= fast_now and high_now >= fast_now

-- "Armed" means a cross happened and no pullback marker has fired since.
local was_long_armed = get_value (long_armed [1], false)
local was_short_armed = get_value (short_armed [1], false)

-- Event: a pullback candle touches the fast EMA and closes in trend direction.
local pullback_up =
    was_long_armed and touches_fast and
    close_now > open_now and close_now > fast_now and fast_now > slow_now

local pullback_down =
    was_short_armed and touches_fast and
    close_now < open_now and close_now < fast_now and fast_now < slow_now

long_armed = conditional (
    data_is_ready and fast_now > slow_now and
    (crosses_up or (was_long_armed and not pullback_up))
)

short_armed = conditional (
    data_is_ready and fast_now < slow_now and
    (crosses_down or (was_short_armed and not pullback_down))
)

higher_setup = conditional (pullback_up)
lower_setup = conditional (pullback_down)

-- Confirm only a new setup on the previous completed candle.
confirmed_higher = conditional (
    get_value (higher_setup [1], false) and
    not get_value (higher_setup [2], false)
)

confirmed_lower = conditional (
    get_value (lower_setup [1], false) and
    not get_value (lower_setup [2], false)
)

if averages_visible then
    plot (fast_ema, "Fast EMA", fast_color, average_width)
    plot (slow_ema, "Slow EMA", slow_color, average_width)
end

if signals_visible then
    plot_shape (
        confirmed_higher,
        "EMA PB HIGHER",
        shape_style.triangleup,
        shape_size.small,
        higher_color,
        shape_location.belowbar,
        -1,
        "HIGHER",
        signal_text_color
    )

    plot_shape (
        confirmed_lower,
        "EMA PB LOWER",
        shape_style.triangledown,
        shape_size.small,
        lower_color,
        shape_location.abovebar,
        -1,
        "LOWER",
        signal_text_color
    )
end

-- QCS advice is a platform notification state only; it does not place trades.
if advice_enabled and
    get_value (confirmed_higher, false) and
    not get_value (confirmed_lower, false) then
    advise (advice.buy)
elseif advice_enabled and
    get_value (confirmed_lower, false) and
    not get_value (confirmed_higher, false) then
    advise (advice.sell)
else
    advise (advice.neutral)
end