Smart Trend, Crypto - WORK IN PROGRESS

hace 19 horas

Description of the Script

This Pine Script is a trend-following trading indicator designed to help traders identify buy and sell opportunities while managing risk through take-profit (TP) and stop-loss (SL) levels. Here’s what the script does in detail:

Core Features:

1. Trend Detection Using EMA Crossover:
• Fast EMA and Slow EMA are calculated using adjustable lengths.
• A Buy Signal is triggered when the Fast EMA crosses above the Slow EMA (bullish trend).
• A Sell Signal is triggered when the Fast EMA crosses below the Slow EMA (bearish trend).

2. Support for Multi-Condition Signals:
• The script combines EMA crossovers, RSI levels, and ADX strength to determine signals:
• Relative Strength Index (RSI): Detects overbought or oversold conditions.
• Average Directional Index (ADX): Ensures trends have sufficient strength.
• Signals only trigger if all selected conditions are met.

Risk Management Features:

3. Stop-Loss Levels:
• Stop-loss levels are calculated based on a percentage distance from the last Buy or Sell Signal.
• For a Buy Signal, the stop-loss is set below the buy price.
• For a Sell Signal, the stop-loss is set above the sell price.
• These levels are plotted as horizontal lines on the chart.

4. Take-Profit Levels:
• Take-profit levels are calculated as a percentage distance from the last Buy or Sell Signal:
• For a Buy Signal, the TP level is above the buy price.
• For a Sell Signal, the TP level is below the sell price.
• Take-Profit Bubbles:
• Small bubbles appear on the chart at TP levels only for the current Buy or Sell Signal.
• This helps focus on the latest trade without cluttering the chart.

Visual Aids:

5. Background Highlighting for Trend Identification:
• The chart background changes color to reflect the detected trend:
• Green for a bullish trend (Buy Signal).
• Red for a bearish trend (Sell Signal).

6. Clear Signal Markers:
• Buy Signal: A green triangle below the price bar.
• Sell Signal: A red triangle above the price bar.
• These markers help visually identify signal points on the chart.

Customizability:
• Adjustable Parameters: The script allows the user to customize:
• EMA lengths, ADX threshold, RSI levels, TP percentage, and SL percentage.
• Preset Configurations: Quick settings for popular assets like BTC, ETH, and others.

Usage:
1. Buy and Sell Signals:
• Use the signals to enter long (Buy) or short (Sell) trades.
2. Risk Management:
• Follow the Stop Loss and Take Profit levels to manage risk and lock in profits.
3. Trend Confirmation:
• Observe background colors and EMA lines to confirm trend direction.

This script provides a comprehensive tool for identifying trades, managing risk, and visually simplifying trend-following strategies. Let me know if you need further clarifications!