OPEN-SOURCE SCRIPT
Smart Trend, Crypto - WORK IN PROGRESS
Description of the Script
This Pine Script is a trend-following trading indicator designed to help traders identify buy and sell opportunities while managing risk through take-profit (TP) and stop-loss (SL) levels. Here’s what the script does in detail:
Core Features:
1. Trend Detection Using EMA Crossover:
• Fast EMA and Slow EMA are calculated using adjustable lengths.
• A Buy Signal is triggered when the Fast EMA crosses above the Slow EMA (bullish trend).
• A Sell Signal is triggered when the Fast EMA crosses below the Slow EMA (bearish trend).
2. Support for Multi-Condition Signals:
• The script combines EMA crossovers, RSI levels, and ADX strength to determine signals:
• Relative Strength Index (RSI): Detects overbought or oversold conditions.
• Average Directional Index (ADX): Ensures trends have sufficient strength.
• Signals only trigger if all selected conditions are met.
Risk Management Features:
3. Stop-Loss Levels:
• Stop-loss levels are calculated based on a percentage distance from the last Buy or Sell Signal.
• For a Buy Signal, the stop-loss is set below the buy price.
• For a Sell Signal, the stop-loss is set above the sell price.
• These levels are plotted as horizontal lines on the chart.
4. Take-Profit Levels:
• Take-profit levels are calculated as a percentage distance from the last Buy or Sell Signal:
• For a Buy Signal, the TP level is above the buy price.
• For a Sell Signal, the TP level is below the sell price.
• Take-Profit Bubbles:
• Small bubbles appear on the chart at TP levels only for the current Buy or Sell Signal.
• This helps focus on the latest trade without cluttering the chart.
Visual Aids:
5. Background Highlighting for Trend Identification:
• The chart background changes color to reflect the detected trend:
• Green for a bullish trend (Buy Signal).
• Red for a bearish trend (Sell Signal).
6. Clear Signal Markers:
• Buy Signal: A green triangle below the price bar.
• Sell Signal: A red triangle above the price bar.
• These markers help visually identify signal points on the chart.
Customizability:
• Adjustable Parameters: The script allows the user to customize:
• EMA lengths, ADX threshold, RSI levels, TP percentage, and SL percentage.
• Preset Configurations: Quick settings for popular assets like BTC, ETH, and others.
Usage:
1. Buy and Sell Signals:
• Use the signals to enter long (Buy) or short (Sell) trades.
2. Risk Management:
• Follow the Stop Loss and Take Profit levels to manage risk and lock in profits.
3. Trend Confirmation:
• Observe background colors and EMA lines to confirm trend direction.
This script provides a comprehensive tool for identifying trades, managing risk, and visually simplifying trend-following strategies. Let me know if you need further clarifications!
This Pine Script is a trend-following trading indicator designed to help traders identify buy and sell opportunities while managing risk through take-profit (TP) and stop-loss (SL) levels. Here’s what the script does in detail:
Core Features:
1. Trend Detection Using EMA Crossover:
• Fast EMA and Slow EMA are calculated using adjustable lengths.
• A Buy Signal is triggered when the Fast EMA crosses above the Slow EMA (bullish trend).
• A Sell Signal is triggered when the Fast EMA crosses below the Slow EMA (bearish trend).
2. Support for Multi-Condition Signals:
• The script combines EMA crossovers, RSI levels, and ADX strength to determine signals:
• Relative Strength Index (RSI): Detects overbought or oversold conditions.
• Average Directional Index (ADX): Ensures trends have sufficient strength.
• Signals only trigger if all selected conditions are met.
Risk Management Features:
3. Stop-Loss Levels:
• Stop-loss levels are calculated based on a percentage distance from the last Buy or Sell Signal.
• For a Buy Signal, the stop-loss is set below the buy price.
• For a Sell Signal, the stop-loss is set above the sell price.
• These levels are plotted as horizontal lines on the chart.
4. Take-Profit Levels:
• Take-profit levels are calculated as a percentage distance from the last Buy or Sell Signal:
• For a Buy Signal, the TP level is above the buy price.
• For a Sell Signal, the TP level is below the sell price.
• Take-Profit Bubbles:
• Small bubbles appear on the chart at TP levels only for the current Buy or Sell Signal.
• This helps focus on the latest trade without cluttering the chart.
Visual Aids:
5. Background Highlighting for Trend Identification:
• The chart background changes color to reflect the detected trend:
• Green for a bullish trend (Buy Signal).
• Red for a bearish trend (Sell Signal).
6. Clear Signal Markers:
• Buy Signal: A green triangle below the price bar.
• Sell Signal: A red triangle above the price bar.
• These markers help visually identify signal points on the chart.
Customizability:
• Adjustable Parameters: The script allows the user to customize:
• EMA lengths, ADX threshold, RSI levels, TP percentage, and SL percentage.
• Preset Configurations: Quick settings for popular assets like BTC, ETH, and others.
Usage:
1. Buy and Sell Signals:
• Use the signals to enter long (Buy) or short (Sell) trades.
2. Risk Management:
• Follow the Stop Loss and Take Profit levels to manage risk and lock in profits.
3. Trend Confirmation:
• Observe background colors and EMA lines to confirm trend direction.
This script provides a comprehensive tool for identifying trades, managing risk, and visually simplifying trend-following strategies. Let me know if you need further clarifications!
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.