kruskakli

Short Term Trade Climate

This is the third and concluding part of the Short Term Trade work I've been working on.

The 'Short Term Trade Climate' will plot a fast EMA (13) and a slow EMA (65).

Only enter LONG when the 'climate' is favourable, i.e the fastEMA(13) is rising
as well as the slowEMA(65) and the fastEMA is above the slowEMA.

The idea is that the slower EMA should roughly represent the next slower
time frame; so for example if you work with 'Daily' then the slowEMA should
represent the 'Weekly' trend (I think I got this idea from studying work by Elder).

When the "good climate" is in effect, it is indicated as a dotted line
with kaki or orange colored circles ('kaki' when the fastEMA is expanding
from the slowEMA, 'orange' otherwise).

An optional trailing ATR Stop-Loss line is also displayed to help you
decide if you should Exit or not.

Use this together with the:

"Short Term Trade Setups" panel and "Short Term Trade Filters" panel.

When you get a signal from the 'Setups' and you are in a 'good climate' and
maybe also with some support from the 'Filters', go for it! (I will... :-)

Remember, the basic idea of Short Term Trades is:

1. Only take LONG positions.
2. Enter often but exit quickly when profit is made.

It would be fantastic if someone who has tried this out wrote a comment about it, letting me know how it went.

Cheers!

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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