OPEN-SOURCE SCRIPT
Multiple SMAs-EMAs & Crosses
Moving averages (MA) are the bedrock of trend analysis. Choosing between Simple (SMA) and Exponential (EMA) depends on whether you prioritize stability or speed.SMA vs. EMA: The Main DifferenceThe core difference lies in how they handle data.
Simple Moving Average (SMA): Treats all days equally. A 50-day SMA averages the last 50 closing prices with no bias. It is smoother and less prone to "fake-outs," making it the gold standard for identifying long-term trends (e.g., the 200-day SMA).
Exponential Moving Average (EMA): Places more weight on the most recent price data. It reacts much faster to sudden market shifts. Short-term traders (scalpers and day traders) prefer EMAs to catch trend changes early.
The Crossover Strategy
A crossover occurs when a "fast" (short-period) MA crosses a "slow" (long-period) MA. This signals a shift in market momentum.
Golden Cross: Fast MA (e.g., 50) crosses above Slow MA (e.g., 200). Bullish: Indicates a potential long-term uptrend.
Death Cross: Fast MA (e.g., 50) crosses below Slow MA (e.g., 200).Bearish: Indicates a potential long-term downtrend.
Using Multiple Moving Averages, Traders often use a "ribbon" or a stack of three MAs to filter noise: Short-term (e.g., 9 or 20): Shows immediate price direction.Medium-term (e.g., 50): Acts as a trend filter and dynamic support/resistance. Long-term (e.g., 200): Defines the "big picture" macro trend.
Simple Moving Average (SMA): Treats all days equally. A 50-day SMA averages the last 50 closing prices with no bias. It is smoother and less prone to "fake-outs," making it the gold standard for identifying long-term trends (e.g., the 200-day SMA).
Exponential Moving Average (EMA): Places more weight on the most recent price data. It reacts much faster to sudden market shifts. Short-term traders (scalpers and day traders) prefer EMAs to catch trend changes early.
The Crossover Strategy
A crossover occurs when a "fast" (short-period) MA crosses a "slow" (long-period) MA. This signals a shift in market momentum.
Golden Cross: Fast MA (e.g., 50) crosses above Slow MA (e.g., 200). Bullish: Indicates a potential long-term uptrend.
Death Cross: Fast MA (e.g., 50) crosses below Slow MA (e.g., 200).Bearish: Indicates a potential long-term downtrend.
Using Multiple Moving Averages, Traders often use a "ribbon" or a stack of three MAs to filter noise: Short-term (e.g., 9 or 20): Shows immediate price direction.Medium-term (e.g., 50): Acts as a trend filter and dynamic support/resistance. Long-term (e.g., 200): Defines the "big picture" macro trend.
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.