Here’s a brief breakdown of what the code is doing:
Inputs for SMA:
You define an input for the length of the Simple Moving Average (sma_length) with a default of 5. Inputs for Supertrend:
ATR length (supertrend_atr_length) is set to 10. Multiplier (supertrend_multiplier) is set to 3. SMA Calculation:
The SMA is calculated using the ta.sma function with the closing prices over the specified length. Supertrend Calculation:
The ta.supertrend function calculates the Supertrend and its direction (positive or negative). Plotting:
You plot the SMA on the chart with the plot function, using the color blue. The Supertrend is also plotted with a color that changes based on the direction. Green for an uptrend (direction > 0) and red for a downtrend (direction <= 0). Background Color:
The background color is dynamically set to green or red based on the trend direction (Supertrend), with a transparency of 90% to give a subtle indication of the current market condition.
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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