NinjaTrader EMA Cloud Trend Following Indicator is built on the fundamental concept of market analysis through the interaction of moving averages. At its core lies the comparison of two Exponential Moving Averages (EMAs) — fast and slow. Their relationship reflects the balance between short-term and medium-term price dynamics: when short-term momentum prevails, the fast EMA is positioned above the slow EMA, creating a bullish background; when the opposite occurs, the market shifts into a bearish phase.
The cloud formed between the two EMAs serves as a clear visualization of the trend. A change in its color highlights the transition of dominance from buyers to sellers and vice versa. For traders, this is more than just an indicator display — it is a tool for structuring market observations: identifying sustained impulses, tracking phase shifts, and filtering out the inevitable noise present on price charts.
The core idea of the method lies in applying a simple yet effective mechanism to define the direction of the trend. Instead of individual moving average lines, the trader observes an integrated zone that reflects not only momentum but also its sustainability.
The indicator belongs to the category of trend-following tools and addresses the task of identifying the market’s current state — trending or counter-trending. This approach enables traders to analyze price action within the logic of sequential phases: upward movement, downward movement, or transitional periods when a directional shift is forming.
EMA Cloud Trend Following Indicator helps traders identify market direction by analyzing two moving averages: a fast one and a slow one. On the chart, a cloud forms between them, with its color reflecting the prevailing trend:
The change in the cloud’s color represents a key event, marking a transition from one market phase to another.
Second Cloud as a Filter
The indicator also supports an optional second cloud with longer EMA periods. This second cloud acts as a filter for the primary cloud.
Market phase markers are only confirmed when the colors of both clouds align. This combination is designed to help filter market noise and assist traders in identifying sustained trend structures.
Additional Features: Choice of Moving Average Type
EMA Cloud allows traders to select the type of moving average used: EMA, SMA, HMA, or KAMA.
This flexibility allows traders to select the moving average type that best aligns with their individual methodology and preferred balance between responsiveness and data smoothing.
The indicator has the following parameters:
Alerts – Configure various types of alerts.
Moving Averages Price Type – selection of the price used for moving average calculation: OPEN, HIGH, LOW, CLOSE, HL2, HLC3, OHLC4.
Moving Averages Type – configuration of the moving average type: EMA, SMA, HMA, or KAMA, which determines the balance between data smoothing and the speed of market phase detection.
MA Fast/Slow Period – setting the periods for fast and slow MAs to define short- and medium-term trends.
Cloud Offset – cloud position offset relative to price on the chart.
Enable Alerts – activation of notifications when a market phase transition occurs (cloud changes color) or specific detection conditions are met.
Show Signals – visual display of directional markers on the chart triggered by changes in the cloud’s color.
Enable Cloud2 as Filter – utilizes a second cloud to validate market phase alignment; markers appear only when both clouds share the same color.
Cloud2: Max Wait Bars – defines the maximum number of bars allowed for the second cloud to align with the primary cloud to confirm a directional event.
We can customize this indicator to your needs — adding functions, modifying logic, or integrating it with other tools for your workflow.
We also convert indicators into Automated Trading Strategies with advanced functions (trailing stops, risk management, filters) tailored to your trading style strictly according to your specifications.
Request a free consultation to discuss the technical scope and timeline of your project.
We are committed to the ongoing development and refinement of our indicators. If you’ve spotted a bug, feel that something essential is missing, or have ideas that could make the indicator even better, just send us a message. Your feedback helps us improve and deliver tools that truly meet traders’ needs.
The indicator provides a set of exposed analytical plot outputs designed for structured integration with third-party strategy builders and automation tools such as BloodHound and BlackBird (SharkIndicators), as well as other algorithmic trading environments.
| Analytical Plot Name | Output Values | Description |
| Long | > 0 | Bullish directional detection condition. |
| Short | > 0 | Bearish directional detection condition. |
Plot output names and descriptions are technical identifiers intended solely for software integration purposes and do not constitute trading advice, signals, or recommendations.
Nordman Algorithms is a trade name of Nordman Algorithms OÜ (Reg. No. 14435535), registered in Tallinn, Estonia.
Software Nature & User Responsibility — Nordman Algorithms provides algorithmic software tools for technical analysis. Nordman Algorithms is not a financial advisor and is not liable for any losses. All trades conducted based on the software’s output are executed at the user’s sole discretion and risk.
Visual Markers & Signal Disclosure — This software may display visual markers (such as arrows, dots, or alerts) when predefined mathematical conditions are met. These markers are provided for educational and analytical purposes only, must not be interpreted as financial guidance, and do not constitute a recommendation to buy, sell, or hold any financial instrument. Users must independently validate all visual cues within their own trading methodology.
No Financial Advice — Nordman Algorithms does not provide discretionary trading signals, investment advice, or managed signal services. Our software represents a mathematical visualization of historical and real-time data. The appearance of a visual marker does not guarantee a profitable trade or predict future market behavior.
Trading Risk Warning — Futures, Forex, and options trading involve significant risk. Risk capital is money that can be lost without jeopardizing financial security. Only risk capital should be used for trading. Past performance is not indicative of future results. View Full Risk Disclosure: https://www.nordman-algorithms.com/risk-disclosure/
ESMA Risk Warning — Financial instruments, especially those involving leverage such as CFDs and Forex, are complex and carry a high risk of rapid financial loss. Our software provides analytical outputs and visual markers based on predefined mathematical conditions and does not mitigate or reduce inherent market risks. You should carefully consider whether you understand how leveraged financial instruments work and whether you can afford the high risk of losing your capital.
CFTC Rule 4.41 — Hypothetical or simulated performance results have inherent limitations. Unlike actual performance records, simulated results do not represent real trading. Because trades have not actually been executed, these results may under- or over-compensate for the impact of market factors such as liquidity. No representation is being made that any account will achieve profits or losses similar to those shown.
Trademark Notice — NinjaTrader® is a registered trademark of NinjaTrader Group, LLC. No NinjaTrader company has any affiliation with the owner, developer, or provider of the products or services described herein, or any interest, ownership or otherwise, in any such product or service, or endorses, recommends or approves any such product or service.
