OPEN-SOURCE SCRIPT
Buy/Sell Indicator
Updated
Based on logic from many top contributors here, the script utilizes LazyBear's WaveTrend Oscillator Indicator along with custom code to plot a few key components for daily trading;
Use Case:
The best possible use case is to enter a trade on a LIME point with O text, this means that is an overconfident entry point.
The trade should be exited on a RED point with O text, this means that is an overconfident exit point.
But you can do with the indicators as you please.
In addition to LazyBear's code, the following existing models and indicators are taken into account:
- Boundaries for entry and exit points which are based on a 6-day trend in OPEN/HIGH and OPEN/LOW prices.
- Daily HIGH and LOW points to establish a good view of stock's movements
- Entry and exit points with confidence levels. These can be treated as entry points for short to medium term investments
- Entry points come in the colours of White and Lime, where white is slightly confident and lime is extremely confident
- Exit points come in the colours of Maroon, and Red, where maroon is slightly confident and red is extremely confident
- Each Entry and Exit point also comes without text, or with a M or H above it, where M indicates medium confidence on the point and an O indicates overconfidence.
Use Case:
The best possible use case is to enter a trade on a LIME point with O text, this means that is an overconfident entry point.
The trade should be exited on a RED point with O text, this means that is an overconfident exit point.
But you can do with the indicators as you please.
In addition to LazyBear's code, the following existing models and indicators are taken into account:
- RSI of closing price over a period of 25
- EMA of RSI
Release Notes
Commentary enhanced to allow better understanding of what's going on in the code.Enhancing tags to allow more people to use this script.
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 publication is governed by House rules. You can favorite it to use it on a chart.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.