EMA Distance Index

EMA Distance Index

EMA Distance Index measures how far price is extended from a structurally important exponential moving average calculated on a user-selected timeframe. It quantifies price location in percentage terms and compares current conditions to historical norms.

This indicator is timeframe-agnostic and works on any chart timeframe, making it a versatile tool for scalping, intraday, and swing trading.

✂️ What It Does:
- Compares current chart timeframe price to an EMA from a selectable timeframe
- Calculates the percentage distance between price and that EMA
- Computes a rolling average distance to establish historical norms
- Displays this information in a clean oscillator pane


Bitcoin 1h chart vs 4h EMA

🔦 Intention:
EMA Distance Index is designed to answer:

“How far is price from its structural mean, relative to what’s normal?”

Rather than predicting direction, it provides objective context about price location and extension.

✨ Key Features:

- Timeframe-agnostic (works on any chart)
- User-selectable EMA timeframe
- Percentage-based (volatility aware)
- Non-repainting
- Lightweight and fast
- Suitable for discretionary and systematic traders


Bitcoin Daily chart vs Weekly EMA

📈 Best Practices:

- EMA timeframe should be equal to or higher than chart timeframe
- Use as a context tool, not a standalone signal
- Adjust lookback length based on chart timeframe
- Combine with structure, VWAP, or volume analysis

📚 Common Use Cases

- Mean-reversion context
- Overextension identification
- Trend pullback evaluation
- Risk framing and trade location
- Volatility regime awareness

🛠️ Settings Overview

- EMA Length: Period used for EMA calculation
- EMA Timeframe: Timeframe on which EMA is calculated
- Lookback Bars: Number of chart bars used for averaging

⚠️ Disclaimer:
EMA Distance Index is an educational and informational tool that visualizes the distance between price and a selected EMA. It does not provide buy, sell, or trading signals, and should not be used as the sole basis for trading decisions.

Users are responsible for their own trades and risk management. Past performance, averages, or historical data do not guarantee future results. Always consider market structure, risk tolerance, and other technical/fundamental factors before taking any action.

The developer assumes no liability for any losses or damages resulting from the use of this indicator. By using this indicator, you acknowledge and accept these terms.

If you'd like access or have any questions, feel free to reach out to me directly via DM.