The Alerts are generated by the changing direction of the ColouredMA (HullMA by default), you then have the choice of selecting the Directional filtering on these signals or a swing reversal filter.
The filters include:
- Type 1 - The three MAs (EMAs 21,55,89 by default) in various combinations or by themselves. When only one directional MA selected then direction filter is given by ColouredMA above(up)/below(down) selected MA. If more than one MA selected the direction is given by MAs being in correct order for trend direction.
- Type 2 - The SuperTrend direction is used to filter ColouredMA signals.
- Type 3 - Outside In is used to filter ColouredMA for swing reversals.
- Type 4 - No directional filtering, all signals from the ColouredMA are shown.
- Each Type can be combined with another type to form more complex filtration.
- Alerts can also be disabled completely if you just want one indicator with one colouredMA and/or 3xMAs and/or and/or SuperTrend painted on the chart.
- Be aware that combining OutsideIn swing filter and a directional filter can be counter productive as they are opposites. So careful consideration is needed when combining OutsideIn with any of the directional filters.
- For Binary Options try ColouredMA = HullMA(13) or HullMA(8) with Type 2 or 3 Filter.
- When using Trend filters SuperTrend and/or 3xMA Trend, you will find if price reverses and breaks back through the Big Fat Signal line, then this can be a good reversal trade.
- Some explanation about the what and ideas of how the generated in Big Snapper can be used:
Inspiration from @vdubus
Big Snapper's OutsideIn Swing filter in Action:
- Added new Signal Type 5: Signals come from Fast MA crossing slower ColouredMA.
- Replaced OutsideIn Coloured MA signals with those generated from the MA cross, this gives earlier entry points.
- Added selectable colours for Big fat marker, the big arrows colours must still be selected in the "Style" parameters of the script.
- Try using SSMA instead of HullMA for signal line, it is similar to Hull but remains smoother at low lengths and also works well with the MA Cross signals.
- For Binary Options/Scalping try MACross signals from ColouredMA = SSMA(14) and FastMA = SSMA(7) with a directional filter, eg EMA 89
- Another BO/Scalper try OutsideIN:MACross ColouredMA = SSMA(14) and FastMA = SSMA(7) and Bollinger set to (14,2)
- For Long term traders how about trying Swing trading with OutSideIN, same settings as above.
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 a publication is governed by House Rules. You can favorite it to use it on a chart.