SMART indicator

24. Nov. 2020

This script combines the usage of the SMA and ATR indicator in order to provide signals for opening and closing trades, either buy or sell signals. It uses SMA and ATR, both configurable by the users.


The trigger of Buy and Sell Signals are calculated through the SMA and ATR:
* Buy Signals: They are highlighted by a dark green background area.
* Sell Signals: They are highlighted by a dark red background area.

The trigger of Close Buy and Close Sell Signals are calculated through current price using SMA and ATR:
* Close Buy Signals: The fast SMA crosses under the close price and at the same time the trend is bullish. They are highlighted by a lighter green area.
* Close Sell Signals: The fast SMA crosses over the close price and at the same time the trend is bearish. They are highlighted by a lighter red area

Few important points about the indicator and the produced signals:
* This is not intended to be a strategy, but an indicator for analyzing the market conditions. It gives you the triggers depending on the real time analysis of the prices, but not being a proper strategy, pay attention about "fake signals" and add always a visual analysis to the provided signals

* Following this indicator, the trade positions should be opened only when background color appears GREEN. Either in this case, analyze the chart in order to see if the signals are "weak" ones, due to "waves" around the SMA . In these cases, you might wait for the next confirmation signals after the waves, when the trend will be better defined

* The close trade signals are provided in order to help to understand when you should close the buy or sell trades. Even in this case, always add a visual analysis to the signals, and pay attention to the support/resistance areas. Sometimes, you can have the close signals in correspondence to support/resistance areas: in these cases wait for the definition of the trend and eventually for the next close trade signals if they will be better defined

Final Notes
* Indicator will show Trend, Pullback, Market bounce and some support and resistance level.

1. Dez. 2020

Versionshinweise

Changed the default value for length of period used to calculate for stop loss. Reduced it to make have a tight stop loss.

2. Dez. 2020

Versionshinweise

Changed value of default stop loss from 8 to 2 to increase more aggressive trading.

4. Dez. 2020

Versionshinweise

Adding a technical profit/loss points using stochastic rsi. Green arrow is a potential buy point with stop if close below previous candle or some percentage points. Red arrow on green background is profit booking point.

4. Dez. 2020

Versionshinweise

Adding one more condition to have a confirmation signal to BUY

7. Dez. 2020

Versionshinweise

Corrected script to take only the best method to make it easy for momentum buying. This will ease the way and take only stocks which are in momentum.

8. Dez. 2020

Versionshinweise

Changed the script to catch every direction, yellow color is the place to book half profits. Though the setup is not strong buy its worth buying and managing risk.

8. Dez. 2020

Versionshinweise

Reverting back to previous changes, though stop loss is big I think it's better from returns point.

8. Dez. 2020

Versionshinweise

Changing the default value

13. Dez. 2020

Versionshinweise

Making script generic to have only the visual effect by changing colors. Removing the stochastic overbought level indication.

26. Jan. 2021

Versionshinweise

Added BUY/SELL labels to work on dark themes