OPEN-SOURCE SCRIPT
ADPPP
#### How to Use:
1. Add the indicator to your chart in TradingView.
2. Configure the settings:
- ATR Length: 14 (default).
- ATR Multiplier: 2.0 (default).
- EMA Length: 50 (default).
- RSI Length: 14 (default).
- Zone Color: Customize the color and transparency of the ATR zones.
3. Look for signals on the chart:
- Buy: Label "BUY" appears when conditions are met.
- Sell: Label "SELL" appears when conditions are met.
4. Backtest the strategy on historical data to evaluate performance.
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#### Advantages of the Strategy:
1. Adaptive to Volatility:
- ATR dynamically adjusts to changing market conditions, making it suitable for lower timeframes.
2. Simple and Effective:
- Combines only three indicators (ATR, EMA, RSI), making it easy to understand and implement.
3. Trend and Momentum Confirmation:
- EMA ensures trades are taken in the direction of the trend.
- RSI filters out overbought/oversold conditions, reducing false signals.
4. Visual Clarity:
- ATR zones are displayed as semi-transparent areas, making it easy to identify key levels.
---
#### Example Trade Setup:
1. Buy Signal:
- Price is above EMA 50 (uptrend).
- Price breaks above the upper ATR level.
- RSI is below 70 (not overbought).
2. Sell Signal:
- Price is below EMA 50 (downtrend).
- Price breaks below the lower ATR level.
- RSI is above 30 (not oversold).
---
#### Additional Enhancements:
1. Add the indicator to your chart in TradingView.
2. Configure the settings:
- ATR Length: 14 (default).
- ATR Multiplier: 2.0 (default).
- EMA Length: 50 (default).
- RSI Length: 14 (default).
- Zone Color: Customize the color and transparency of the ATR zones.
3. Look for signals on the chart:
- Buy: Label "BUY" appears when conditions are met.
- Sell: Label "SELL" appears when conditions are met.
4. Backtest the strategy on historical data to evaluate performance.
---
#### Advantages of the Strategy:
1. Adaptive to Volatility:
- ATR dynamically adjusts to changing market conditions, making it suitable for lower timeframes.
2. Simple and Effective:
- Combines only three indicators (ATR, EMA, RSI), making it easy to understand and implement.
3. Trend and Momentum Confirmation:
- EMA ensures trades are taken in the direction of the trend.
- RSI filters out overbought/oversold conditions, reducing false signals.
4. Visual Clarity:
- ATR zones are displayed as semi-transparent areas, making it easy to identify key levels.
---
#### Example Trade Setup:
1. Buy Signal:
- Price is above EMA 50 (uptrend).
- Price breaks above the upper ATR level.
- RSI is below 70 (not overbought).
2. Sell Signal:
- Price is below EMA 50 (downtrend).
- Price breaks below the lower ATR level.
- RSI is above 30 (not oversold).
---
#### Additional Enhancements:
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
Want to use this script on a chart?
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.