EmojiZones are user-configurable display highlights that indicate price levels identified by emoji trading indicators. When used in Dynamic Support/Resistance mode, EmojiZones enable the trader to understand how the supply and demand at specific price levels acts as resistance and support and assess how it may act when price next trades at this level.
No zone is drawn.
A zone is drawn from the signal bar forward by the user-selected number of bars:
Extend Until Future Intersection
A line is projected forward from the signal bar until such time as price retrades at the relevant price level:
Dynamic Support/Resistance Display
This innovative display mode highlights price levels identified by emoji trading order flow indicators. When the market trades next at these levels, the EmojiZone evaluates price and order flow to determine whether the zone’s state is:
- new support – an indicator has identified this price level as potential support – there is demand at this price level – indicated by a solid zone coloured in the EmojiZone’s primary colour
- tested strong support – price has traded again at the support level and price and order flow confirms the support. This is indicated by a solid outline
- tested weak support – price has traded again at the support level and price and order flow suggest that the level has weakened and will potentially break. This is indicated by a dotted outline
- broken support – price and order flow confirm that the support level has broken. The zone is now regarded as new resistance – there is supply at this price level – indicated by a solid zone coloured in the EmojiZone’s secondary colour
- tested strong resistance – price has traded again at the new resistance level and price and order flow confirms the resistance. This is indicated by a solid outline
- tested weak resistance – price has traded again at the new resistance level and price and order flow suggest that the level has weakened and will potentially break. This is indicated by a dotted outline
- broken level – once price and order flow confirm the break of the role-reversed zone, it will no longer be indicated on the chart
The opposite cycle applies for a resistance zone, i.e.
new resistance > tested strong resistance > tested weak resistance > broken resistance (becomes support) > tested strong support > tested weak support > broken level
A zone may skip certain states and will never move backwards in state.
Charts featuring EmojiZone Dynamic Support/Resistance displays can make it very apparent as to what logical trading decisions can be made at specific levels as well as highlighting price levels with high probability for low risk entries, potential targets and corresponding evaluation of risk:reward ratios and sensible stop loss levels.
With a lack of care, it is possible to seriously impact Sierra Chart performance depending upon the indicator selected and corresponding settings. For example, applying EmojiZone Dynamic Support/Resistance to a Zero Print study on a very thin contract, or a contract that has incorrect rollover rules applied within Chart Settings, or a chart with many days of data loaded can result in multi-second study calculation periods. It is important to ensure:
- a sensible Chart Settings value for days loaded, e.g. in the range of 5-30
- appropriate Chart Settings continuous contract/rollover rules have been set including back adjustment
- if necessary, limiting the number of EmojiZone evaluation levels (see below)
- avoiding the use of Transparency – set the subgraph Transparency levels to 0
Sierra Chart provide good direction on optimising performance here.
The following settings are provided in all indicators supporting EmojiZone displays:
|EmojiZone Mode||Select whether the EmojiZone is set to: Disabled, Fixed Projection, Extend Until Future Intersection or Dynamic Support/Resistance Display.|
|EmojiZone Fixed Projection Distance||Specifies the number of bars from the current bar that a Fixed Projection EmojiZone will be drawn.|
|EmojiZone Extension Line Label||Specifies the line label (can be left blank) for an Extend Until Future Intersection EmojiZone line.|
|EmojiZone Dynamic Break Threshold||When using a Dynamic Support/Resistance Display EmojiZone, this input sets the number of ticks by which the zone can be breached without it being regarded as having broken.|
|EmojiZone Dynamic Evaluation Levels||If set to 0, every current EmojiZone is evaluated at each study calculation. To reduce processing time, a non-zero value will limit calculation to the nearest n EmojiZones to the current price where n is the value entered in this setting.|
and the EmojiZone subgraph inputs are used to select:
- Positive/Negative colours
- Line thickness
- Drawing Transparency
Aside from EmojiZones, indicators also provide use the following display methods:
Symbols Above/Below Bars
You can select the symbol type, color and offset from the relevant bar for all indicators within the emoji trading Order Flow Suite.
Alerts & Trading Systems
To enable custom alerts and development of automated trading systems, both Spreadsheet and ACSIL-based, each indicator provides a range of relevant subgraphs. Please study the relevant indicator webpages for full details of each indicator’s available subgraphs and study settings.