Overview
This Pine Script generates buy and sell signals based on price interaction with a 44-period Simple Moving Average (SMA). It incorporates closing behavior from the last five candles to refine signal accuracy, making it ideal for trend-following strategies on TradingView.
Key Features
44-Period Simple Moving Average (SMA)
- Calculates and plots the 44 SMA of the closing price as a trend-following indicator.
- Identifies when price action "touches" or interacts with the moving average.
Buy/Sell Signal Logic
Buy Signal Conditions:
- Green candle (close > open).
- Candle’s high/low near the 44 SMA (proximity check).
- At least 2 of the last 5 candles closed above the 44 SMA.
- The 44 SMA is below the candle’s midpoint.
Sell Signal Conditions:
- Red candle (close < open).
- Candle’s high/low near the 44 SMA.
- At least 2 of the last 5 candles closed below the 44 SMA.
- The 44 SMA is above the candle’s midpoint.
Label Plotting
- Buy signals: Green labels plotted at the low of green candles.
- Sell signals: Red labels plotted at the high of red candles.
Optional EMA Smoothing
- Customizable Exponential Moving Average (EMA) for additional trend smoothing.
- Adjustable length and styling via script inputs.
Customization & Alerts
- Inputs: Modify EMA length, tolerance for proximity checks, and label colors/text.
- Alerts: Set notifications for buy/sell signals to automate trading decisions.
👉 Enhance your trading strategy with this script
Usage Tips
- Ideal for trend-following strategies combined with other indicators.
- Use signals to identify potential entry/exit points based on SMA interaction.
Benefits
✅ Visual signals directly on the chart.
✅ Balances immediate price action with historical trends.
✅ Fully customizable moving averages and labels.
✅ Alert integration for real-time notifications.
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FAQs
Q: How accurate are the buy/sell signals?
A: Signals are based on SMA interaction and historical candle behavior, but always confirm with additional indicators or market context.
Q: Can I adjust the SMA period?
A: Yes—modify the script’s length parameter to test different SMA periods (e.g., 20 or 50).
Q: Is this script suitable for scalping?
A: Designed for trend-following; may require adjustments for faster timeframes.
Q: How do I set up alerts?
A: In TradingView, right-click on a signal label and select "Create Alert."
Final Notes
This script enhances decision-making by combining moving averages with price action analysis. Always backtest strategies and adapt to market conditions.
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