Trend Trading Setup

25 ธ.ค. 2024

Trend Trading Setup is an indicator that is designed to assist with trend trading by indicating when the basic conditions for a trade in either direction are met.

Note: Default values assume the 1-hour chart

The idea is that this will allow a trader to know for the first glance if a market is worthy of closer inspection or not.

Indicator Features:

1. Simple Moving Averages - defining the basic trade conditions

5 - Day Moving Average
20 - Day Moving Average
50 - Day Moving Average

2. Visualisation of The Price Location In Relation To The 5 - Day Moving Average

If price is above the 5-day Moving Average, the space between them is green. If price is below the 5-day Moving Average, the space between them is red.

3. Risk Management Section - calculates an ATR-based stop loss.

4. Indication When The Conditions Are Met

If the conditions for a bullish bias are met, the chart background is green. If the conditions for a bearish bias are met, the chart background is red. If none of the conditions are met, the chart background is left as is.

A user can adjust the length of any of the Moving Averages as well as the length of the ATR and the ATR Multiplier for the stop loss size. Default values assume the 1-hour chart, but surprisingly the settings seem to show logical results also on other time frames.

The Setup:

Bullish - 5-day Moving Average is above the 50-day Moving Average. The slope of both of the Moving Averages is positive and the price has to be above the 5-day Moving Average.

Bearish - Exactly the same as for the bullish bias, but opposite.

I do not recommend to take this Trend Trading Setup indicator as the only reason for a position. However, I believe it can be very useful to show when the overall conditions are in favour of a long position or in favour of a short position.

27 ธ.ค. 2024

เอกสารเผยแพร่

Trend Trading Setup is an indicator that is designed to assist with trend trading by indicating when the conditions for a trade in either direction are met.

Trading conditions are defined as some configuration of the three Moving Averages and price. You can set that configuration using a dropdown menu.
In case some of the parameters isn't needed for the setup, the option "Bypass" will ignore that parameter.

Note: Default values assume the 1-hour chart

Indicator Features:

1. Simple Moving Averages

5 - Day Moving Average
20 - Day Moving Average
50 - Day Moving Average

2. Visualisation of The Price Location In Relation To The 5 - Day Moving Average

If price is above the 5-day Moving Average, the space between them is green. If price is below the 5-day Moving Average, the space between them is red.

3. Risk Management Section - calculates an ATR-based stop loss.

4. Indication When The Conditions Are Met

If the conditions for a long trade are met, the chart background is green. If the conditions for a short trade are met, the chart background is red. If none of the conditions are met, the chart background is left as is.

In the Risk Management Section, you can also set the spread size. The spread is added to the plain ATR multiple stop size.
This is especially useful when trading on low time frames like the 2-minute or the 5-minute chart.
By adding the spread to the basic ATR multiplication we ensure that the stop will not be triggered prematurely.

I do not recommend taking this Trend Trading Setup indicator as the only reason for a position. However, I believe it can be very useful to know when the overall conditions are in favour of a long position or in favour of a short position.

29 ธ.ค. 2024

เอกสารเผยแพร่

New feature: Start lines of the Moving Average calculations

By default the colours of the start lines are matching the colours of the Moving Averages. If you don't want these lines on the chart, just uncheck the box "lines".

These lines can be helpful for visualising the amount of data that the current value of the Moving Average is calculated from. It may help with the anticipation of future Moving Average values.

29 ธ.ค. 2024

เอกสารเผยแพร่

New Features:

1. The lines that mark the start of Moving Average Calculations are now changing colour to always match their corresponding Moving Averages.

2. You can now choose which Moving Average you want to be used to visualise the distance in relation to price.

The colours of all the parameters can now be set in the Inputs tab, while in the Style tab only the line types and width can be set.

I hope you enjoy these changes.

29 ธ.ค. 2024

เอกสารเผยแพร่

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