OPEN-SOURCE SCRIPT
LSMAs
This indicator consists of three lines.
The main line (LSMA-A) is the least squares moving average (LSMA).
The second line (SMMA) is the smoothed moving average of the LSMA-A. When the SMMA crosses the LSMA-A below, it generates a BUY signal, while when it crosses the LSMA-A above, it is considered a SELL signal.
Furthermore, an uptrend is considered if the SMMA line is below, or a downtrend if it is above. Along these trend lines, the third line, LSMA-B (another shorter-period least squares moving average) is used to identify peaks and bottoms. This allows for wave analysis.
For optimization, adjusting the shorter period to market conditions is sufficient.
The main line (LSMA-A) is the least squares moving average (LSMA).
The second line (SMMA) is the smoothed moving average of the LSMA-A. When the SMMA crosses the LSMA-A below, it generates a BUY signal, while when it crosses the LSMA-A above, it is considered a SELL signal.
Furthermore, an uptrend is considered if the SMMA line is below, or a downtrend if it is above. Along these trend lines, the third line, LSMA-B (another shorter-period least squares moving average) is used to identify peaks and bottoms. This allows for wave analysis.
For optimization, adjusting the shorter period to market conditions is sufficient.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
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.