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Risk indicator 50DSMA/50WSMA
Updated
Indicates buy and sell zones, intended to be used along with your scaling-in scaling-out strategy.
Example: sell 20% of holdings in first sell zone, sell another 20% in the second zone, etc.
Example: sell 20% of holdings in first sell zone, sell another 20% in the second zone, etc.
Release Notes
This is more advanced version and it's more sharp/less laggingLogic has been changed a bit and visually is more like RSI indicator but it still represents amount of risk if investing in current period of time
Usage instructions
Assume you have X amount of money to invest each month (or any other period of time according to your Dollar Cost Averaging plan)
Scale in
- Buy X*3 amount in 30-40 area (Buy Zone #1)
Buy X*2 amount in 40-50 area (Buy Zone #2)
Buy X amount in 50-60 area (Buy Zone #3)
Don't do anything, just accumulate cash on your balance sheet when in 60-80 area (Indecision Zone)
Scale out
*
Sell X amount in 80-90 area (Sell Zone #1)
Sell X*2 amount in 90-100 area (Sell Zone #2)
Release Notes
Returned old changes back. Decided to move new changes into a separate oscillator which will have open code.
Disclaimer
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