The ALMA (50 period) acts as the main trend filter, meaning that long positions are taken above the ALMA and short positions are taken below the ALMA. For instance, the 5 and 10 period exponential moving averages are added on the chart to give early signals to the trend.
Therefore, when the 5/10 EMA triggers a bullish crossover, long signals are taken when price is above the ALMA, likewise, when the 5/10 EMA triggers a bearish crossover, short signals are taken when price is below the ALMA.
Find out optimal values by trying. May not produce accurate results in horizontal markets. Thank you.
This is the best script that I came across. However, it would be improved further if parabolic sar is added to it. Unfortunately I do not how to write a script. So I hope you would improve it further. Thank you.
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Fast MA should be set to 4 and Slow MA to 5 for best performance. Thank you.