Strategy
Indicator
Indicator
Indicator
Indicator
MA, MATR, ChEx | All in One - 4CR CUPIn trade position setup, we always need to determine the market structure and manage the position sizing in a short period of decision time. Indicators such as moving average, initial stop loss and trailing stop loss are always helpful.
This indicator put all these handy tools into a single toolkit, which includes the following price action and risk management indicators:
MA - Moving Average
MATR - Moving Average less Average True Range
ChEx - Chandelier Exit
This script further enhances the setting so that you can easily customize the indicators.
For both the Moving Averages and the Moving Average less Average True Range , you can pick a type of moving average which suits your analysis style from a list of commonly used moving average formulations: namely, EMA , HMA , RMA, SMA and WMA , where EMA is selected as default.
The Moving Average less Average True Range , MATR, is usually applied as a reference to set the initial stop loss whenever opening a new position.
The abbreviation, MATR, is picked, so that this can serve as a handy reminder of a very good trading framework as elaborates as below:
M – Market Structure
A – Area of Value
T – Trigger
R – Risk Management (aka. Exit Strategy) Indicator
Indicator
Strategy
Indicator
Strategy
Indicator
Strategy
SwingScalpin MA'sDefault
HMA's + Trend Signals
Default SMA's
ALMA
BarColoring
The idea behind this script was to incorporate a few different moving average types into 1 indicator so multiple trading strategies could be implemented depending on Price Action. This indicator includes 3 HMA's, 2 user defined EMA/SMA's, 1 ALMA (which also is used for the bar coloring), and Trend signals at the bottom of the chart (which are defined by the 1st MA). By default all of the Moving Averages are set to false because they aren't meant to be used together unless you so chose to. The only feauture initially being shown are the Trend signals at the bottom of the screen.
HMA's - The default lengths for the HMA's are 7, 14, and 21.
This is not Financial Advice nor am I saying this works all of the time but here are a few examples of how I've traded the HMA's... OF course thid depends on overall PA but the idea is to enter and exit when all
three HMA's turn Green or Red...
For quicker entries and exits, you could enter when the Fast HMA crosses the Medium HMA and exit when the it crosses back over/under the Medium HMA.
For more of a swing trade and when there's definitely an established trend, I would stay in the trade until Fast HMA crosses under the Slow HMA, otherwise it might just be a normal retrace prior to making another move up.
When PA is ranging but not really trending in either direction, I'll use the Slow HMA as somewhat of a Trailing SL.
The 2 user defined moving averages can either be an EMA or SMA. The 1st MA is set to the 200 SMA by default, which also triggers the Trend signals at the bottom of the chart. The 2nd MA is set to the 6 SMA by default.
The ALMA is set to 50 by default, which is also used for the bar coloring. Lastly, all of the MA's change color depending on the trend. Indicator
Indicator
Indicator
Strategy
Indicator
Indicator
Indicator
Indicator
SMA + Trend Strength + Trailing Stop LossThe 'SMA + Trend Strength + Trailing Stop Loss' indicator was designed for swing trading long positions over the course of days/weeks. The benefit of the indicator is to identify areas where the market of a given asset is showing signs of a strong uptrend, divergences, and fear. A 13-bar simple moving average is color coded to four colors based on 5 given conditions at a time, which are represented as a trend meter on the bottom right of the screen. A trailing stop loss indicator is included to secure your profits or limit your loss in case the market reverses on you unexpected. Please use this indicator responsibly with proper risk management, and never rely on the indicator by itself for buy and sell signals.
When the simple moving average color is green, it means that at least 4 of 5 conditions are confirming a move upwards, this is when you can take an entry into a trade based on your entry strategy. As the trend continues, the color will eventually change to yellow signaling a divergence. This is when you can use your exit strategy to find a good point to sell. It is wise not to take new positions when the color is trending yellow.
If the color changes from yellow to orange, that is a warning sign that the trend is about to change or has begun to change. Prices may have already fallen. However, sometimes the color will change from yellow back to green signaling a continuation of the trend. You can either keep holding or take a new position in this instance.
When the color is red, this signals fear in the market, you should stay out of the market at first. However, as the market consolidates and the color starts changing back to orange, this is an opportunity to take a long position at a reasonably low price.
Simple Moving Average (13-Bar) Color Explanation:
The colors change based on 5 market conditions represented in the trend meter.
Green: Strong Uptrend
Yellow: Divergence Present
Orange: Warning
Red: Fear
Trend Meter Explanation:
The trend meter draws 5 arrows indicating bullish or bearish presence.
LL = Lower Lows - Detects when the market is trending with lower lows.
HH = Higher Highs - Detects when the market is trending with higher highs.
MA = SMA Direction - A formula is used to determine the direction of the SMA.
DI = Directional Index - Identifies when upwards momentum is trending.
RSI = Relative Strength Index - Identifies when the RSI is in an uptrend state.
Note: For advanced users, this indicator has a hidden DMI(4, 4, 4) and RSI(14) indicator used to determine the last two conditions. The Directional Index is based on a DI Plus momentum moving average to determine a momentum trend and the RSI trending over 50 will constitute an uptrend signal as below 50 it will point down.
Trailing stop loss:
The trailing stop loss is determined based on the lowest price of the last 8 bars.
A gray step-line is drawn at the suggested stop activation price.
A red step-line is drawn at the suggested stop limit price.
When the price breaches the trailing stop, a red X will appear below the bar.
You can turn each of these features on or off based on your preference. Happy trading!
Indicator
Indicator
Indicator
