ChartArt

Stock Market Trend Analysis Trading System 101 (by ChartArt)

This is a very simple trading system which is measuring the core of uptrends and downtrends using three basic elements: Close price, HL2 price, Pivot price.

Depending if the uptrend or downtrend is strong, the buy/sell signals are shown in different colors. The stronger trends are in brighter colors (lime and fuchsia). If the trend just fully changed direction from uptrend to downtrend (or vice versa), there is a background color highlight in the color of the new trend direction.

The trend detection should work best on monthly charts. I have created this in under an hour. My goal was to use the least amount of rules possible, therefore there are many false signals and the code is quite lazy.

You can lose all your money if you rely on these buy/sell signals!
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// ChartArt's Stock Market Trend Analysis Trading System 101 Indicator
//
// Version 1.0
// Idea by ChartArt on August 3, 2015.
//
// This indicator is measuring the essential core of
// uptrends and downtrends using three basic elements:
// Close price, HL2 price, Pivot price.
// 
// Potential stronger uptrends and downtrends are
// shown in a different brighter color. And if the
// trend changed from uptrend to downtrend (or vice versa)
// there is a background color highlight.
//
// List of my work: 
// https://www.tradingview.com/u/ChartArt/


// high, low band
lower = low
upper = high
l = plot(lower, color=silver)
u = plot(upper, color=silver)
fill(u, l, color=silver)

// pivot
pivot = (high + low + close ) / 3.0 

// bar color
TrendingUp() => close > close[1] and hl2 > hl2[1] and close > pivot 
TrendingDown() => close < close[1] and hl2 < hl2[1] and close < pivot 
barcolor(TrendingUp() ? green : TrendingDown() ? red : blue)

// background color
bgcolor(TrendingUp() and TrendingDown()[1] ? green : TrendingDown() and TrendingUp()[1] ? red : na)

// buy, sell signals
bearish = cross(close,pivot) == 1 and close[1] > close 
bullish = cross(close,pivot) == 1 and close[1] < close 
plotshape(bearish, color=maroon, style=shape.arrowdown, text="Sell", location=location.abovebar)
plotshape(bullish, color=olive, style=shape.arrowup, text="Buy", location=location.belowbar)

// strong buy, strong sell signals
verybearish = cross(close,pivot) == 1 and close[1] > close and TrendingDown()
verybullish = cross(close,pivot) == 1 and close[1] < close and TrendingUp()
plotshape(verybearish, color=fuchsia, style=shape.arrowdown, text="Sell", location=location.abovebar)
plotshape(verybullish, color=lime, style=shape.arrowup, text="Buy", location=location.belowbar)
Cherry picked example where the script worked quite good on a daily chart of EURUSD. Most times the signals are wrong though on daily charts. Monthly charts work much better.

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S&P 500 index, close price from August 21, 2015

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S&P 500 index, close price from Monday August 24, 2015

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S&P 500 index, close price from December 31, 2015

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S&P 500 index, close price from February 29, 2016

trend is neutral
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DOW Industrials Index, close price from August 21, 2015

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DOW Industrials Index, close price from Monday August 24, 2015

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DOW Industrials Index, close price from December 31, 2015

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DOW Industrials Index, close price from February 29, 2016

trend is neutral
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Nasdaq Composite, close price from August 21, 2015

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Nasdaq Composite, close price from Monday August 24, 2015

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Nasdaq Composite, close price from December 31, 2015

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Nasdaq 100 index, close price from December 31, 2015

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DOW Transportations index, close price from August 21, 2015

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DOW Transportations index, close price from Monday August 24, 2015

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DOW Transportations index, close price from December 31, 2015

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DOW Transportations index, close price from February 29, 2016

trend is bullish
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Stoxx Europe 600 (ETF), close price from August 21, 2015

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Stoxx Europe 600 (ETF), close price from Monday August 24, 2015

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Stoxx Europe 600 (ETF), close price from December 31, 2015

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Gold, real time price from early August 24, 2015

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Gold, real time price from early Tuesday August 25, 2015

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Gold futures, close price from December 31, 2015

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US Dollar Index, close price from August 21, 2015

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US Dollar Index, close price from Monday August 24, 2015

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US Dollar Index, close price from December 31, 2015

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EURUSD, real time price from early August 24, 2015

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EURUSD, real time price from early Tuesday August 25, 2015

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EURUSD, close price from December 31, 2015

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DAX 30 index, close price from August 21, 2015

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DAX 30 index, close price from Monday August 24, 2015

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DAX 30 index, close price from December 31, 2015

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DAX index, close price from February 29, 2016

trend is bearish
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Shanghai A-Share Stock Price Index, close price from August 21, 2015

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Shanghai A-Share Stock Price Index, close price from Monday August 24, 2015

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Shanghai A-Share Stock Price Index, close price from December 31, 2015

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FTSE 100 index, close price from August 21, 2015

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FTSE 100 index, close price from Monday August 24, 2015

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FTSE 100 index, close price from December 31, 2015

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FTSE index, close price from February 29, 2016

trend is neutral
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Nikkei 225 index, close price from August 21, 2015

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Nikkei 225 index, close price from Monday August 24, 2015

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Nikkei 225 index, close price from December 30, 2015

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Nikkei 225 index, close price from February 29, 2016

trend is bearish
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DOW US Total Stock Market Index, close price from August 21, 2015

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DOW US Total Stock Market Index, close price from Monday August 24, 2015

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DOW US Total Stock Market Index, close price from December 31, 2015

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DOW US Total Stock Market Index, close price from February 29, 2016

trend is neutral
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Nasdaq Biotech Index (ETF), close price from August 21, 2015

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Nasdaq Biotech Index (ETF), real-time price from early Tuesday August 25, 2015

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