This script uses 3 moving averages (2 simple moving averages and 1 exponential moving average ) to signal long and short opportunities based on moving average crossovers.
A long SMA (Signal SMA2) is used to determine longer term trend. When the EMA crosses above the Slow SMA1 and price is above the Signal SMA2. The space between the moving averages will shade green and the Signal SMA should also be green.
A sell signal occurs when the EMA crosses below the Slow SMA1 and price is below the Signal SMA2. The space between the moving averages will turn red and the Signal SMA should also be red.
A retracement, consolidation, or reversal may be occurring if the shaded color is yellow.
Use the identifying shapes to learn when to open or close positions.
A long SMA (Signal SMA2) is used to determine longer term trend. When the EMA crosses above the Slow SMA1 and price is above the Signal SMA2. The space between the moving averages will shade green and the Signal SMA should also be green.
A sell signal occurs when the EMA crosses below the Slow SMA1 and price is below the Signal SMA2. The space between the moving averages will turn red and the Signal SMA should also be red.
A retracement, consolidation, or reversal may be occurring if the shaded color is yellow.
Use the identifying shapes to learn when to open or close positions.
Notas de prensa:
Revising to fit the TradingView House Rules.
Notas de prensa:
In this version, I have added the option for what I call Dynamic Moving Averages (not sure if they are already a thing). When "Dynamic Moving Average" is turned on, the source for the moving average will be changed to high or low based on the current trend. The idea is that in an uptrend, closing below the moving average that is tracking average lows will signal a possible reversal to the downside. Vice Versa, in a downtrend, closing above a moving average that tracks the highs will also show a reversal to the upside.
How to Use:
EMA Strength - This will show how strong a trending market is. A strong market will use this MA as support.
SMA1 Pullback - This will be support in the event that the asset closes below the ema.
SMA2 Trend - This determines whether the asset is in an uptrend or downtrend.
1. Only take buy positions when the shading is green and sell positions when the shading is red. Be careful taking positions after trend reversals as this is when most false signals are produced.
2. Consider closing the position if the moving averages crossover OR if you have dynamic moving averages turned on and we close on the other side of the Dynamic Moving Average. (No signal will be printed for the dynamic)
FYI
- Using the dynamic moving averages will produce more signals during consolidation periods and choppy reversals. I recommend using them with the default settings on the 4h or higher.
- I recommend using either the shading signal OR the emoji signal to keep your charts clean.
How to Use:
EMA Strength - This will show how strong a trending market is. A strong market will use this MA as support.
SMA1 Pullback - This will be support in the event that the asset closes below the ema.
SMA2 Trend - This determines whether the asset is in an uptrend or downtrend.
1. Only take buy positions when the shading is green and sell positions when the shading is red. Be careful taking positions after trend reversals as this is when most false signals are produced.
2. Consider closing the position if the moving averages crossover OR if you have dynamic moving averages turned on and we close on the other side of the Dynamic Moving Average. (No signal will be printed for the dynamic)
FYI
- Using the dynamic moving averages will produce more signals during consolidation periods and choppy reversals. I recommend using them with the default settings on the 4h or higher.
- I recommend using either the shading signal OR the emoji signal to keep your charts clean.
Notas de prensa:
Upgraded to Version 5 of pinescript
Made icons smaller so they don't crowd the screen when zoomed out
Corrected issue where simultaneous exit and entry signals would not plot
Corrected issue where close icon would print with wrong color
Made icons smaller so they don't crowd the screen when zoomed out
Corrected issue where simultaneous exit and entry signals would not plot
Corrected issue where close icon would print with wrong color