Adaptive 12/48 EMA

The Adaptive 12/48 EMA is a trend-following indicator that dynamically changes color based on price positioning relative to key exponential moving averages (EMAs).

EMA Calculation:
The script calculates three EMAs—9 EMA (white), 12 EMA (adaptive color), and 48 EMA (adaptive color).

Trend Confirmation:
The 12 EMA turns green when the price (open, close, and low) is fully above it, indicating bullish momentum. The 12 EMA turns red when the price is fully below it, signaling bearish conditions.

Long-Term Trend (48 EMA):
The 48 EMA turns purple when the 12 EMA is above it, confirming an uptrend. The 48 EMA turns pink when the 12 EMA is below it, confirming a downtrend. Both EMAs turn gray when there's no clear trend.

How to Benefit from It:
Trend Trading: Use green/red shifts in the 12 EMA to time entries in the direction of momentum.
Trend Strength Confirmation: The 48 EMA color change helps determine the longer-term trend direction.
Confluence with Other Indicators: Works well with volume indicators or RSI for confirmation before entering trades.

This indicator provides a clear visual representation of trend strength and direction, helping traders make informed decisions based on price structure.