This momentum and trend-following strategy captures the majority of any trending move, and works well on high timeframes.
It uses an equal-period EMA and SMA crossover to detect trend acceleration/deceleration, since an EMA places a greater weight and significance on the most recent data.
To reduce noise and optimize entries, we combined this with an overall trend bias for further confluence.
How it works:
Signals are determined by the crossover of an EMA and SMA of the same length, e.g. EMA-50 and SMA-50.
The overall trend bias is determined using a slower SMA golden/death cross, e.g. SMA-50 and SMA-100.
The signal is stronger when it occurs in confluence with the overall trend bias, e.g. when EMA-50 crosses over SMA-50, while above the SMA-100. This is analogous to only opening long positions in a bull market.
Indicator description:
GREEN: Up Trend (EMA is above SMA, while EMA is above BIAS_MA. This shows a bullish confluence.)
YELLOW: No Trend (EMA/SMA crossover and BIAS_MA are not in confluence.)
RED = Down Trend (EMA is below SMA, while EMA is below BIAS_MA. This shows a bearish confluence.)
版本注释
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YELLOW has been refined to show when both Momentum MAs are above or below the BIAS_MA:
OLIVE: Both EMA and SMA are above BIAS_MA, meaning the overall trend is bullish, however EMA is below SMA, meaning the short term momentum is bearish.
ORANGE: Both EMA and SMA are below BIAS_MA, meaning the overall trend is bearish, however EMA is above SMA, meaning the short term momentum is bullish.
YELLOW: EMA is above BIAS_MA, while SMA is below BIAS_MA, and vice versa.
Very nice indicator. I tested it from 1 Jan 2020 to 25 March 2021 and it worked very well indeed. Jan to March 2021 were particularly impressive ! Would it be possible to add alerts for long/short entries in the script, so I can set alerts on TV? Also have you considered improving the indictor by having potential exit points for each trade? Keep up the good work, I do like what you did here!
jleccese
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Excelente Aporte!!!
pgopi63
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Hi there,
First off, thank you for creating this indicator. I am new to Tradingview and thus Pine. Had a request. Is it possible to "pin" the sma and ema timeframe to daily close irrespective of the chart's timeframe? I hope I am explaining this correctly. As a trend trader, I look mostly at daily timeframes, but when executing a trade, I'd look at the intra-day charts to get a good entry point but still would like to see this indicator on the chart default to daily close instead of using the current chart's bar close. Hope this makes sense. Thanks again.