Depending on whether the market is above or below the 200 , the script determines if the market is in or territory. Above the 200 , the script will ignore the 20 as a buy condition and buy solely on the confirmation of a cross upon the close of a candle. In this market, the script will only enable the sell condition if both the is AND a close below the 20 occurs. This is to reduce the chances of the script selling prematurely in the event of a cross, if the market is still in overall territory.
When the market is below the 200 , the confirmation occurs in the opposite direction. The buy condition will only be met if both the is AND a close above the 20 occurs. However, the sell condition ignores the 20 and will sell solely on the confirmation of a cross upon the close of the candle.
This strategy can be used in both and markets. This conservative strategy will slightly underperform in a bull market, with the sell condition occasionally being met and then potentially buying back higher. However, it will successfully get you out of a turning market and automatically switch into a more 'risk-off' mentality during a bear market. This strategy is not recommended for sideways markets, as trading around the 20 coupled with a relatively flat profile can cause the strategy to buy the peaks and sell troughs easily.