- This momentum and trend-following strategy captures the majority of any trending move, and works well on high timeframes.
- It uses an equal-period and crossover to detect trend acceleration/deceleration, since an places a greater weight and significance on the most recent data.
- This version is optimized for longs, and designed to cut your losses quickly and let your winners run.
- To reduce noise and optimize entries, we combined this with an overall trend bias for further confluence.
How it works:
- Signals are determined by the crossover of an and of the same length, e.g. EMA-50 and SMA-50.
- The overall trend bias is determined using a slower golden/death cross, e.g. SMA-50 and SMA-100.
- The signal is stronger when it occurs in confluence with the overall trend bias, e.g. when EMA-50 crosses over SMA-50, while above the SMA-100. This is analogous to only opening long positions in a bull market.
- Trend Buy: crosses above , and overall trend bias is . Buying is in confluence with the overall trend bias.
- Risky Buy: crosses above , and overall trend bias is . Buying is early, more risky, and not in confluence with the overall trend bias.
- Late Buy: crosses above BIAS_SLOW. This gives further confirmation of , but signal comes later.
- Sell: crosses under .
Strategy entry and exit conditions:
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.