Indicator
Moving Average Crossover Swing StrategyMoving Average Crossover Swing Strategy
**Overview:**
The basic concept of this strategy is to generate a signal when a faster/shorter length moving average crosses over (for Longs) or crosses under (for Shorts) a medium/longer length moving average. All of which are customizable. This strategy can work on any timeframe, however the daily is the timeframe used for the default settings and screenshots, as it was designed to be a multi-day swing strategy. Once a signal has been confirmed with a candle close, based on user options, the strategy will enter the trade on the open of the next candle.
The crossover strategy is nothing new to trading, but what can make this strategy unique and helpful, is the addition of further confirmation points, ATR based stop loss and take profit targets, optional early exit criteria, customizable to your needs and style, and just about everything visual can be toggled on/off. This strategy is based on a Trend (MA) indicator and a Momentum (MACD) indicator. While a Volume-based indicator is not shown here, one could consider using their favorite from that category to further compliment the signal idea.
It should be noted that depending on the time frame, direction(s) chosen, the signal options, confirmation options, and exit options selected, that a ticker may not produce more than 100 trades on the back test. Depending on your style and frequency, one could consider adjusting options and/or testing multiple tickers. It should also be noted that this strategy simply tests the underlying stock prices, not options contracts. And of course, testing this strategy against historical data does not assume that the same results will occur in future price action.
Shoutout given to Ripster's Clouds Indicator as pieces of that code were taken and modified to create both the Cloud visualization effects, and the Moving Average Pair Plots that are implemented in this strategy.
BASIC DEFAULTS
All can be changed as normal
Initial capital = 10,000
Order Sizing = 25% of equity (use the "Inputs" tab to modify this)
Pyramiding = 0
Commission = 0.65 USD per order
Price Verification = 1 tick
Slippage = 1 tick
RISK MANAGMENT
You will notice two different percentage options and ATR multipliers. This strategy will adjust position sizing by not exceeding either one of those % values based on the ATR (Average True Range) of the symbol and the multipliers selected, should the stock hit the stop loss price.
For Example, lets assume these values are true:
Account size = $10,000,
Max Risk = 1% of account size
Max Position Size = 25% of the account size
Stock Price = 23.45
ATR = 3.5
ATR Stop Loss Multiplier = 1.4
Then the formulas would be:
ACCT_SIZE * MaxRisk_% = 10000 * .01 = $100 (MaxCashRisk)
-----
MaxCashRisk / (ATR * ATR_SL_MULTIPLIER) = 100 / (3.5 * 1.4) = 20.4 Shares based on Max Cash Risk
-----
(ACCT_SIZE * MaxEquity_%) / STOCK_PRICE = (10000 * .25) / 23.45 = 106.61 Shares based on Max Equity Allocation
The minimum value of each of those options is then used, which in this case would be to purchase 20 shares so as not to exceed the max dollar risk should the stock reach the stop loss target. Likewise, if the ATR were to be much lower, say 0.48 cents, and all else the same, then the strategy would purchase the 106 shares based on Max Equity Allocation because the Max Cash Risk would require 149.25 shares.
MOVING AVERAGE OPTIONS
Select between and change the length & type of up to 5 pairs (10 total) of moving averages
The "Show Cloud-x" option will display a fill color between the "a" and "b" pairs
All moving averages lines can be toggled on/off in the "Style" tab, as well as adjusting their colors.
Visualization features do not affect calculations, meaning you could have all or nothing on the chart and the strategy will still produce results
SIGNAL CHOICES
Choose the fast/shorter length MA and the medium/longer length MA to determine the entry signal
CONFIRMATION OPTIONS
Both of these have customizable values and can be toggled on/off
A candle close over a slower/much longer length moving average
An additional cross-over (cross-under for Shorts) on the MACD indicator using default MACD values. While the MACD indicator is not necessary to have on the chart, it can help to add that for visualization. The calculations will perform whether the indicator is on the chart or not.
EARLY EXIT CRITERIA
Both can be toggled on/off with customizable values
MA Cross Exit will exit the trade early if the select moving averages cross-under (for longs) or cross-over (for shorts), indicating a potential reversal.
Max Bars in Trades will act as a last-resort exit by simply calculating the amount of full bars the trade has been open, and exiting on the opening of the next bar. For example: the default value is 8 bars, so after 8 full bars in the trade, if no other exit has been triggered (Stop Loss, Take Profit, or MA Cross(if enabled)), then the trade will exit at the opening of the 9th bar.
Finally, there is a table displaying the amount of trades taken for each side, and the amount & percent of both early exits. This table can be turned off in the "Style" tab
ADDITIONAL PLOTS
MACD (Moving Average Convergence/Divergence):
- The MACD is an optional confirmation indicator for this strategy.
- Plotting the indicator is not necessary for the strategy to work, but it can be helpful to visually see the status and position of the MACD if this feature is enabled in the strategy
- This helps to identify if there is also momentum behind the entry signal
Strategy
Indicator
Inverted EMAThe concept of an inverted Exponential Moving Average (EMA) isn't commonly used in traditional technical analysis or trading strategies. Inverting the EMA essentially means taking the reciprocal of the EMA values. While it may not have widespread use or recognition, here are some potential considerations or interpretations for the inverted EMA:
1. **Inverse Trend Indicator:**
- Inverting the EMA might be considered as an alternative approach to trend analysis. When the inverted EMA is rising, it could suggest a potential bearish trend, and when it is falling, it might indicate a bullish trend. Traders might explore using this as a contrarian or unconventional trend indicator.
2. **Volatility Indicator:**
- The inverted EMA might be used as a measure of volatility. When the values are fluctuating rapidly, it could imply increased volatility in the underlying asset. This could be useful for traders who are interested in gauging market dynamics.
3. **Divergence Analysis:**
- Traders may explore divergences between price and the inverted EMA. For instance, if prices are making new highs, but the inverted EMA is not, it could signal potential weakness or divergence in the bullish trend.
4. **Inverse Moving Average Crossovers:**
- In the context of moving average crossovers, traders usually look for crossovers between shorter and longer EMAs as potential signals. Inverting this concept, crossovers between inverted short-term and long-term EMAs might be explored for unconventional trading signals.
5. **Systematic Exploration:**
- Traders and researchers sometimes experiment with unconventional indicators to discover new patterns or behaviors in the market. The inverted EMA could be part of systematic exploration to uncover unique insights that traditional indicators might not reveal.
It's important to note that the interpretation and use of the inverted EMA depend on the trader's strategy, risk tolerance, and specific market conditions. Traders should thoroughly backtest any strategy involving unconventional indicators and use them cautiously in live trading. Additionally, the effectiveness of the inverted EMA may vary across different financial instruments and timeframes. Indicator
Golden Cross and Death Cross with ProbabilityThe Advanced Golden and Death Crossover Indicator offers traders a powerful tool for identifying potential buy and sell signals through the classic technical analysis method of moving average crossovers. This script enhances decision-making by dynamically changing the chart background color in response to Golden (bullish) and Death (bearish) crossovers, providing a visual representation of the market's momentum.
Features:
Golden and Death Crossover Detection: Utilizes a 50-period SMA and a 200-period SMA to identify potential buy (golden cross) and sell (death cross) points.
Continuous Background Coloring: Changes the chart's background color to green for golden crosses and red for death crosses, offering an intuitive grasp of market trends.
Customizable Lookback Period: Allows users to adjust the lookback period for calculating the success rate of each crossover, making the indicator adaptable to various trading strategies.
Success Rate Calculation: Provides an additional layer of analysis by calculating the historical success rate of crossovers within the specified lookback period.
Instructions:
Adding the Indicator: Search for "Advanced Golden and Death Crossover Indicator" in the PulseWire Indicators & Strategies library and add it to your chart.
Customization: Access the indicator settings to adjust the lookback period according to your trading preferences.
Interpretation: Use the continuous background color as a guide to market conditions, with green indicating bullish momentum and red indicating bearish momentum. The success rate of past crossovers can help assess the reliability of the signals.
How the Script Works:
The Advanced Golden and Death Crossover Indicator operates by continuously monitoring two key moving averages (MAs) on your chart: a short-term (50-period) SMA and a long-term (200-period) SMA. Here's a step-by-step breakdown of its functionality:
Crossover Detection:
Golden Cross: When the short-term MA crosses above the long-term MA, indicating potential bullish momentum, the script identifies this as a Golden Cross signal.
Death Cross: Conversely, when the short-term MA crosses below the long-term MA, suggesting potential bearish momentum, the script flags this as a Death Cross signal.
Background Coloring:
Upon detecting a Golden Cross, the script changes the chart background to green, visually representing a bullish market condition.
Upon detecting a Death Cross, the chart background turns red, indicating bearish market conditions.
This color change remains in effect until the next crossover event, providing a continuous visual cue of the market's trend direction.
Success Rate Calculation:
The script calculates the historical success rate of these crossovers within a user-defined lookback period. This metric helps assess the reliability of the signals based on past performance.
Customization:
Users have the flexibility to adjust the lookback period for the success rate calculation, allowing for customization according to individual trading strategies and risk preferences.
Application in Trading Analysis:
Traders can use this indicator as part of their technical analysis toolkit to make informed decisions about entry and exit points. The visual cues from the continuous background coloring, combined with the success rate of past signals, provide a comprehensive overview of market trends and crossover reliability. It’s important for traders to combine this indicator with other analysis tools and consider broader market conditions to optimize their trading strategy.
Disclaimer:
This script is provided for educational and informational purposes only and should not be construed as investment advice. Trading involves risk, and you should conduct your own research or consult a financial advisor before making investment decisions. The author or distributor of this script bears no responsibility for any trading losses incurred by users.
Indicator
Price Cross Time Custom Range Interactive█ OVERVIEW
This indicator was a time-based indicator and intended as educational purpose only based on pine script v5 functions for ta.cross() , ta.crossover() and ta.crossunder() .
I realised that there is some overlap price with the cross functions, hence I integrate them into Custom Range Interactive with value variance and overlap displayed into table.
This was my submission for Pinefest #1 , I decided to share this as public, I may accidentally delete this as long as i keep as private.
█ INSPIRATION
Inspired by design, code and usage of CAGR. Basic usage of custom range / interactive, pretty much explained here . Credits to PulseWire.
█ FEATURES
1. Custom Range Interactive
2. Label can be resize and change color.
3. Label show tooltip for price and time.
4. Label can be offset to improve readability.
5. Table can show price variance when any cross is true.
6. Table can show overlap if found crosss is overlap either with crossover and crossunder.
7. Table text color automatically change based on chart background (light / dark mode).
8. Source 2 is drawn as straight line, while Source 1 will draw as label either above line for crossover, below line for crossunder and marked 'X' if crossing with Source 2's line.
9. Cross 'X' label can be offset to improve readability.
10. Both Source 1 and Source 2 can select Open, Close, High and Low, which can be displayed into table.
█ LIMITATIONS
1. Table is limited to intraday timeframe only as time format is not accurate for daily timeframe and above. Example daily timeframe will give result less 1 day from actual date.
2. I did not include other sources such external source or any built in sources such as hl2, hlc3, ohlc4 and hlcc4.
█ CODE EXPLAINATION
I pretty much create custom function with method which returns tuple value.
method crossVariant(float price = na, chart.point ref = na) =>
cross = ta.cross( price, ref.price)
over = ta.crossover( price, ref.price)
under = ta.crossunder(price, ref.price)
Unfortunately, I unable make the labels into array which i plan to return string value by getting the text value from array label, hence i use label.all and add incremental int value as reference.
series label labelCross = na, labelCross.delete()
var int num = 0
if over
num += 1
labelCross := label.new()
if under
num += 1
labelCross := label.new()
if cross
num += 1
labelCross := label.new()
I realised cross value can be overlap with crossover and crossunder, hence I add bool to enable force overlap and add additional bools.
series label labelCross = na, labelCross.delete()
var int num = 0
if forceOverlap
if over
num += 1
labelCross := label.new()
if under
num += 1
labelCross := label.new()
if cross
num += 1
labelCross := label.new()
else
if cross and over
num += 1
labelCross := label.new()
if cross and under
num += 1
labelCross := label.new()
if cross and not over and not under
num += 1
labelCross := label.new()
█ USAGE / EXAMPLES
Indicator
Indicator
Indicator
Hull WavesThe Hull Waves indicator is based on the Hull Moving Averages (HMA), which are special moving averages that stand out for their ability to filter out market noise and offer a clearer view of price trends. Compared to traditional moving averages, HMAs are more responsive yet smoother, allowing traders to capture significant price movements without getting overwhelmed by short-term fluctuations.
The HMAs integrated into Hull Waves provide two distinct perspectives on the price trend:
8-period HMA: This short-term HMA is extremely reactive and closely follows price changes. It is ideal for capturing short-term trading signals while the medium-term 21-period HMA offers a more balanced view of price trends and identifies medium-term trends.
By crossing HMAs, traders can efficiently identify trend reversal points or strong market continuations.
Another feature of the indicator is the “fan” of dynamic lines, which acts as a visual float for price candles, allowing traders to quickly evaluate trading opportunities.
The "fan" or float of dynamic lines represents a visual representation of the candle's price movements. These lines extend from the start point to the end point, like an open fan. This visual approach makes the market dynamics immediately evident.
Strategy:
Long Entry Signal (Buy):
When the Hull Waves range shows a series of upward sloping lines and the Hull Moving Averages (e.g. 8-period HMA) crosses the 21-period HMA upwards, it is a long entry signal.
Confirmation of the signal can come from an increase in trader volume or other supporting indicators.
Place a buy order at the next closing price.
Short Entry Signal (Sell):
When the Hull Waves range shows a series of downward sloping lines and the Hull Moving Averages (e.g. 8-period HMA) crosses the 21-period HMA downward, it is a short entry signal.
Confirm the signal with an increase in trader volume or other relevant indicators.
Place a sell order at the next closing price.
Exit Signal (Closing a Position):
To close a long position, wait for a signal reversal, such as the Hull Moving Averages crossing downwards or a change in the Hull Waves range.
To close a short position, wait for a signal reversal, such as the Hull Moving Averages crossing higher or a change in the Hull Waves range.
Indicator
Strategy
Vortex Cross w/MA ConfirmationThis script is a trading strategy that combines the Vortex Indicator and a Moving Average (MA) to generate potential entry signals for long and short positions.
1. Vortex Indicator:
The Vortex Indicator consists of two lines: Vortex Positive (VIP) and Vortex Negative (VIM). It is designed to identify trend direction and measure the strength of a trend.
2. Moving Average (MA):
The script uses a chosen type of Moving Average (SMA, EMA, SMMA, WMA, or VWMA) to smooth the price data. The smoothed line is referred to as the "Smoothing Line."
3. Determine Long and Short Conditions:
The script looks for potential long entry signals when VIP crosses above VIM, highlighting each crossover on the chart, and the closing price is above the Smoothing Line. It searches for short entry signals when VIM crosses above VIP, with the closing price is below the Smoothing Line. When the long or short conditions are met, the strategy enters either a long or short position accordingly.
Potential Usage:
The strategy can be utilized in trending markets, where the Vortex Indicator helps identify trend direction and strength, and the Moving Average smooths the price data to filter out some noise. It aims to capture trends and ride them while avoiding false signals during choppy or sideways markets. Strategy
Library
Moving Average - TREND POWER v1.1- (AS)0)NOTE:
This is first version of this indicator. It's way more complicated than it should be. Check out Moving Average-TREND POWER v2.1-(AS), its waaaaay less complicated and might be better.Enjoy...
1)INTRODUCTION/MAIN IDEA:
In simpliest form this script is a trend indicator that rises if Moving average if below price or falling if above and going back to zero if there is a crossover with a price. To use this indicator you will have to adjust settings of MAs and choose conditions for calculation.
While using the indicator we might have to define CROSS types or which MAs to use. List of what cross types are defined in the script and Conditiones to choose from.The list will be below.
2) COMPOSITION:
-MA1 can be defined by user in settings, possible types: SMA, EMA, RMA, HMA, TEMA, DEMA, LSMA, WMA.
-MA2 is always ALMA
3) OVERLAY:
Default is false but if you want to see MA1/2 on chart you can change code to true and then turn on overlay in settings. Most plot settings are avalible only in OV=false.
if OV=true possible plots ->MA1/2, plotshape when choosen cross type
if OV=false -> main indicator,TSHs,Cross counter
4)PRESETS :
Indicator has three modes that can be selected in settings. First two are presets and do not require selecting conditions as they set be default.
-SIMPLE - most basic
-ABSOLUTE - shows only positive values when market is trending or zero when in range
-CUSTOM - main and the most advanced form that will require setting conditions to use in calculating trend
4.1)SIMPLE – this is the most basic form of conditions that uses only First MA. If MA1 is below selected source (High/Low(High for Uptrend and Low for DNtrend or OHLC4) on every bar value rises by 0.02. if it above Low or OHLC4 it falls by 0.02 with every bar. If there is a cross of MA with price value is zero. This preset uses CROSS_1_ULT(list of all cross types below)
4.2) ABSOLUTE – does not show direction of the trend unlike others and uses both MA1 and MA2. Uses CROSS type 123_ULT
4.3) CUSTOM – here we define conditions manually. This mode is defined in parts (5-8 of description)
5)SETTINGS:
SOURCE/OVERLAY(line1) – select source of calculation form MA1/MA2, select for overlay true (look point 3)
TRESHOLDS(line2). – set upper and lower THS, turn TSHs on/off
MA1(line3) – Length/type of MA/Offset(only if MA type is LSM)
MA2(line4) – length/offset/sigma -(remember to set ma in the way that in Uptrend MA2MA1 in DNtrend)
Use faster MA types for short term trends and slower types / bigger periods for longer term trends, defval MA1/2 settings
are pretty much random so using them is not recomended.
CROSSshape(line5) – choose which cross type you want to plot on chart(only in OV=true) or what type you want to use in counting via for loops,
CROSScount(line6) – set lookback for type of cross choosen above
BOOLs in lines 5 and 6 - plotshape if OV=true/plot CROSScount histogram (if OV=false)
Lines 7 and 8 – PRESET we want to use /SRC for calculation of indicator/are conditions described below/which MAs to use/Condition for
reducing value t 0 - (if PRESET is ABSOLUTE or SIMPLE only SRC should be set(Line 8 does not matter if not CUSTOM))
5)SOURCE for CONDS:
Here you can choose between H/L and OHLC. If H/L value grow when MAlow. If OHLC MAOHLC. H/L is set by default and recommended. This can be selected for all presets not only CUSTOM
6)CROSS types LIST:
“1 means MA1, 2 is MA2 and 3 I cross of MA1/MA2. L stands for low and H for high so for example 2H means cross of MA2 and high”
NAME -DEFINITION Number of possible crosses
1L - cross of MA1 and low 1
1H - cross of MA1 and high 1
1HL - cross of MA1 and low or MA1 and high 2 -1L/1H
2L - cross of MA2 and low 1
2H - cross of MA2 and high 1
2HL - cross of MA2 and low or MA1 and high 2 -2L/2H
12L - cross of MA1 and low or MA2 and low 2 -1L/2L
12H - cross of MA1 and high or MA2 and high 2 -1H/2H
12HL - MA1/2 and high/low 4 -1H/1L/2H/2L
3 -cross of MA1 and MA2 1
123HL -crosses from 12HL or 3 5 -12HL/3
1_ULT - cross of MA1 with any of price sources(close,low,high,ohlc4 etc…)
2_ULT - cross of MA2 with any of price sources(close,low,high,ohlc4 etc…)
123_ULT – all crosses possible of MA1/2 (all of the above so a lot)
7)CRS CONDS:
“conditions to reduce value back to zero”
>/< - 0 if indicator shows Uptrend and there’s a cross with high of selected MA or 0 if in DNtrend and cross with low. Better for UP/DN trend detection
ALL – 0 if cross of MA with high or low no matter the trend, better for detecting consolidation
ULT – if any cross of selected MA, most crosses so goes to 0 most often
8)MA selection and CONDS:
-MA1: only MA1 is used,if MA1 below price value grows and the other way around
MA1price =-0.02
-MA2 – only MA2 is used, same conditions as MA1 but using MA2
MA2price =-0.02
-BOTH – MA1 and MA2 used, grows when MA1 if below, grows faster if MA1 and MA2 are below and fastest when MA1 and MA2 are below and MA2price=-0.02
-MA1 and MA2 >price=-0.03
-MA1 and MA2 ?price and MA2>MA1=-0.04
9)CONDITIONS SELECTION SUMMARRY:
So when CUSTOM we choose :
1)SOURCE – H/L or OHLC
2)MAs – MA1/MA2/BOTH
3)CRS CONDS (>/<,ALL,ULT)
So for example...
if we take MA1 and ALL value will go to zero if 1HL
if MA1 and >/< - 0 if 1L or 1H (depending if value is positive or negative).(1L or 1H)
If ALL and BOTH zero when 12HL
If BOTH and ULT value goes back to zero if Theres any cross of MA1/MA2 with price or cross of MA1 and MA2.(123_ULT)
If >/< and BOTH – 0 if 12L in DNtrend or 12H if UPtrend
10) OTHERS
-script was created on EURUSD 5M and wasn't tested on different markets
-default values of MA1/MA2 aren't optimalized so do not
-There might be a logical error in the script so let me know if you find it (most probably in 'BOTH')
-thanks to @AlifeToMake for help
-if you have any ideas to improve let me know
-there are also tooltips to help Indicator
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