Moving Average Bands

Use this script to find buy and sell zones for BTC based on momentum of the move relative to the average asset price over a given period. The script plots a series of offset bands above and below the Simple Moving Average . When price crosses another band further from the SMA , the background is rendered brighter. The brighter the background, the stronger the buy and sell signal is, as the expectation is that price wants to return to the SMA . Settings are adjustable to fine tune to various time frames and assets. Good settings for BTC Daily are length 30, layers at 10, 20, 30, and 40 .

On 1H BTC /USD I use length 200, layers at 5, 10, 15, 20 to find decent swing trading opportunities.

On BTC /USD 1D chart, combine with Bitcoin Logarithmic Growth Curve from @mabonyi (original by @quantadelic )for confluence of very reliable signals.
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 a publication is governed by House Rules. You can favorite it to use it on a chart.

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