Dynamic Balance Channel

This is an indicator of Moomoo trading software.

This indicator combines multi-period EMAs (4/6/10/15 days) with a 20-day MA to build a dynamic price channel:

1. Green Line (AVG_EMA): Smoothed average of 4 EMAs, reflecting short-term momentum.
2. Red Boundary (BOUND): 20-day MA acting as a trend threshold.
3. Channel Zone: The area between green and red lines defines a “balance zone”. Price within the zone suggests consolidation; breakout indicates trend direction.
4. Trading Signals:
   • 👆 Arrow (Buy): Green line crosses above red line = bullish trend.
   • 👇 Arrow (Sell): Green line crosses below red line = bearish reversal.

Core Logic: Uses multi-EMA smoothing to reduce noise, paired with 20-day MA to filter false breaks and identify high-probability trend transitions.

Detailed Explanation

Usage Scenarios

• Hold positions when channel expands, exit when narrows
• Failed breaks at red line warn of reversals
• Ignore trades within the channel without signals

Key Advantages

① Stable: Multi-EMA reduces whipsaws vs single MA
② Visual: Color zones simplify trend strength analysis
③ Beginner-friendly: Arrows provide clear actions

Operation instructions

When the band is red, it is a downward trend, and green is an upward trend. When the 👆 symbol appears, you can open a position and set a stop loss; the appearance of the 👇 symbol is a sell signal.

Below are two historical K-lines of Apple and Google. Combining indicators can easily enter and exit the market.

Let’s take a look at this indicator formula:

VAR1:=EMA(CLOSE,4);
VAR2:=EMA(CLOSE,6);
VAR3:=EMA(CLOSE,10);
VAR4:=EMA(CLOSE,15);
VAR5:=(VAR1+VAR2+VAR3+VAR4)/4;

AVG_EMA:EMA(VAR5,2),LINETHICK2,COLORGREEN;
BOUND:=MA(CLOSE,20);

DRAWBAND(AVG_EMA,RGB(0,255,0),BOUND,RGB(255,0,0));

COND1:=CROSS(AVG_EMA,BOUND);
COND2:=CROSS(BOUND,AVG_EMA);
DRAWICON(COND1,L*0.98,11);
DRAWICON(COND2,H*1.02,12);