OPEN-SOURCE SCRIPT
Multi-Asset Trading Strategy
This multi-asset trading strategy combines popular technical indicators, such as moving averages (MA) and the Relative Strength Index (RSI), to generate buy and sell signals for trading across various asset classes, including crypto, stocks, and forex. It also includes custom stop loss (SL) and take profit (TP) levels for each trade, providing traders with a simple, yet effective, tool to manage trades directly on the chart.
How It Works:
Moving Averages (MA): The strategy uses two simple moving averages (SMA) of different lengths to determine the trend direction:
A short-term MA (10-period by default) helps capture quicker price movements.
A long-term MA (50-period by default) represents the broader market trend.
A buy signal is generated when the short-term MA crosses above the long-term MA.
A sell signal is triggered when the short-term MA crosses below the long-term MA.
Relative Strength Index (RSI): The RSI is used to confirm whether the market is overbought or oversold. The script considers the RSI to filter out false signals:
A buy signal is confirmed if the RSI is below the overbought level (default 70).
A sell signal is confirmed if the RSI is above the oversold level (default 30).
Take Profit (TP) & Stop Loss (SL): Each trade comes with a dynamically calculated TP and SL level based on a 2% move from the entry price:
For long positions, TP is set 2% above the entry, and SL is set 2% below.
For short positions, TP is set 2% below the entry, and SL is set 2% above.
Signal Background & Alerts:
The background color of the chart changes dynamically based on the signals: green for buy signals and red for sell signals.
Alerts are built-in for both long and short signals, notifying traders when it's time to enter or exit a position
How It Works:
Moving Averages (MA): The strategy uses two simple moving averages (SMA) of different lengths to determine the trend direction:
A short-term MA (10-period by default) helps capture quicker price movements.
A long-term MA (50-period by default) represents the broader market trend.
A buy signal is generated when the short-term MA crosses above the long-term MA.
A sell signal is triggered when the short-term MA crosses below the long-term MA.
Relative Strength Index (RSI): The RSI is used to confirm whether the market is overbought or oversold. The script considers the RSI to filter out false signals:
A buy signal is confirmed if the RSI is below the overbought level (default 70).
A sell signal is confirmed if the RSI is above the oversold level (default 30).
Take Profit (TP) & Stop Loss (SL): Each trade comes with a dynamically calculated TP and SL level based on a 2% move from the entry price:
For long positions, TP is set 2% above the entry, and SL is set 2% below.
For short positions, TP is set 2% below the entry, and SL is set 2% above.
Signal Background & Alerts:
The background color of the chart changes dynamically based on the signals: green for buy signals and red for sell signals.
Alerts are built-in for both long and short signals, notifying traders when it's time to enter or exit a position
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.
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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.