Vegas plus by stanley

This Pine Script implements a comprehensive trend-following strategy known popularly as the **Vegas Tunnel Method**. It combines multiple Exponential Moving Averages (EMAs) to define trends, pullbacks, and breakouts.

Here is a step-by-step walkthrough of how the code works, broken down by its components and logic.

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### 1. The Anatomy (The Indicators)
The script uses three distinct groups of Moving Averages to define the market structure.

#### A. The Fast EMAs (The Trigger & Exit)
* **EMA 12 (Signal):** The fastest line. It is used to trigger entries (crossing the tunnel).
* **EMA 21 (Exit):** Used as a trailing stop. If the price crosses this line against your trade, the script signals an exit.
* **EMA 55 (Filter):** A medium-term filter, often used visually to gauge trend health.

#### B. The "Hero" Tunnel (The Action Zone)
* **EMAs 144 & 169 & 200:** These creates the main "Tunnel."
* **Function:** This acts as dynamic Support and Resistance.
* **Bullish:** If the 144 (Top) is above the 200 (Bottom), the tunnel is painted Blue.
* **Bearish:** If the 144 is below the 200, it is painted Red.

#### C. The "Anchor" Tunnel (The Deep Trend)
* **EMAs 576 & 676:** This creates a massive, slow-moving background tunnel.
* **Function:** It tells you the long-term trend. Generally, you only want to take Buy signals if price is above this Anchor, though the script logic focuses primarily on the Hero tunnel for triggers.

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### 2. State Memory (`var` Variables)
This is a sophisticated part of the script. It uses `var` variables to "remember" where the price was in the past.
* `originPrice`: Remembers if the price was last seen **Above** (1) or **Below** (-1) the tunnel.
* `originEMA`: Remembers if the EMA 12 was last seen **Above** (1) or **Below** (-1) the tunnel.

**Why is this needed?**
To distinguish between a **Breakout** (crossing from Bear to Bull) and a **Pullback** (already Bull, dipped into tunnel, and coming back out).

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### 3. The Four Entry Triggers
The script looks for four specific scenarios to generate a Buy or Sell signal. You can turn these on/off in the settings.

#### Trigger 1: Price U-Turn (Trend Continuation)
* **Logic:** The Price was *already* above the tunnel (`originPrice == 1`), dipped down, and is now crossing back up (`crossover`).
* **Meaning:** This is a classic "Buy the Dip" signal within an existing trend.

#### Trigger 2: EMA U-Turn (Lagging Confirmation)
* **Logic:** Similar to Trigger 1, but uses the **EMA 12** line instead of the Price candle.
* **Meaning:** This is safer but slower. It waits for the average price to curl back out of the tunnel.

#### Trigger 3: Breakthrough (Momentum Shift)
* **Logic:** The EMA 12 was previously *below* the tunnel (`originEMA == -1`) and has just crossed *above* it (`crossover`).
* **Meaning:** This is a Trend Reversal signal. The market has shifted from Bearish to Bullish.

#### Trigger 4: Wick Rejection (Touch & Go)
* **Logic:**
1. Price is generally above the tunnel.
2. The `Low` of the current candle touches the tunnel.
3. The `Low` of the *previous* candle did NOT touch the tunnel.
4. The candle closes *outside* (above) the tunnel.
* **Meaning:** The price tested the support zone and was immediately rejected (bounced off), leaving a wick.

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### 4. Trade Management (State Machine)
The script uses a variable called `tradeState` to manage signals so they don't spam your chart.

* `tradeState = 0`: Flat (No position).
* `tradeState = 1`: Long.
* `tradeState = -1`: Short.

**The Rules:**
1. **Entry:** If `validLong` is triggered AND `tradeState` is not already 1 -> Change state to 1 (Long) and plot a **BUY** label.
2. **Holding:** If you are already in State 1, the script ignores new Buy signals.
3. **Exit:** If `tradeState` is 1 AND price closes below EMA 21 -> Change state to 0 (Flat) and plot an **Exit L** label.

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### 5. Visual Summary
* **Green Label:** Buy Signal (Long Entry).
* **Red Label:** Sell Signal (Short Entry).
* **Grey X:** Exit Signal (Close the position).
* **Blue/Red Tunnel:** The "Hero" tunnel (144/169/200).
* **Grey Background Tunnel:** The "Anchor" tunnel (576/676).

### How to read the signals:
You are looking for the price to interact with the **Hero Tunnel** (the thinner, brighter one).
1. **Trend:** Look at the slope of the Anchor (thick grey) tunnel.
2. **Setup:** Wait for price to come back to the Hero Tunnel.
3. **Trigger:** Wait for a **Green Label**. This means the price dipped into the tunnel and is now blasting out (U-Turn), or has rejected the tunnel (Wick), or has broken through a new trend (Breakthrough).
4. **Exit:** Close the trade when the **Grey X** appears (Price crosses the EMA 21).