OPEN-SOURCE SCRIPT
SMA 20 & 5 Magic
Moving Average based envelops and bands are quite popular tools in the equity trading universe. One such popular band is 20 SMA High-Low band. In 20 SMA High-Low band generally a BUY is signaled when price breaks above the High of the band, and a SELL when price falls below the Low of the band. However, at times the time-price points to look for trading/ investing opportunities and taking position are not very clear in this generic mode.
This script combines the 20 SMA High-Low band and a 5 SMA line plotted over it, to tackle this limitation. It helps to find more precise trading/ investing opportunities, Entry and Exit time-price points above & below the band, traversing along the 5 SMA line. The price within the band is usually considered as 'no trades' zone.
This set up can be applied on any TF, but generally holds good for swings on daily/ hourly TFs. By tweaking SMA 20 and 5 to SMA 200 and 50 respectively in the settings, it may also help in identifying medium/Long term trends and investment opportunities using daily/ weekly TFs .
Take it as a tool for learning and analysis. Happy trading/ investing.
This script combines the 20 SMA High-Low band and a 5 SMA line plotted over it, to tackle this limitation. It helps to find more precise trading/ investing opportunities, Entry and Exit time-price points above & below the band, traversing along the 5 SMA line. The price within the band is usually considered as 'no trades' zone.
This set up can be applied on any TF, but generally holds good for swings on daily/ hourly TFs. By tweaking SMA 20 and 5 to SMA 200 and 50 respectively in the settings, it may also help in identifying medium/Long term trends and investment opportunities using daily/ weekly TFs .
Take it as a tool for learning and analysis. Happy trading/ investing.
Script de código abierto
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La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.
Script de código abierto
Fiel al espíritu de TradingView, el creador de este script lo ha convertido en código abierto, para que los traders puedan revisar y verificar su funcionalidad. ¡Enhorabuena al autor! Aunque puede utilizarlo de forma gratuita, recuerde que la republicación del código está sujeta a nuestras Normas internas.
Exención de responsabilidad
La información y las publicaciones no constituyen, ni deben considerarse como asesoramiento o recomendaciones financieras, de inversión, de trading o de otro tipo proporcionadas o respaldadas por TradingView. Más información en Condiciones de uso.