This is a simple algorithm for a Tradingview strategy tracking a convergence of 2 unrelated indicators.
Convergence is the solution to my trading problems.
It's a puzzle with infinite possibilities and only a few working combinations.
Here's one that I like
- Price vs Moving average for detecting a breakout
Take out the notebooks :) and some coffee (good for focus). I'm in coffee
The pattern is a two-candle reversal pattern.
The second candle completely ‘engulfs’ the real body of the first one, without regard to the length of the tail shadows.
The pattern appears in a downtrend and is a combination of one red candle followed by a larger green candle
The pattern appears in a downtrend and is a combination of one green candle followed by a larger red candle
We're bored sir... what's the point of all this?
In summary, an is a pattern to track reversals. (the whole TradingView audience stands up now giving a standing ovation)
Adding the Price vs Moving average filters allows to track reversals with momentums (half of the audience collapsed because this is too awesome)
Ok sir... you picked up my interest
I included some cool backtest filters:
- date range filtering
- flexible take profit in USD value (plotted in blue)
- flexible stop loss in USD value (plotted in red)
All the best
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 a publication is governed by House Rules. You can favorite it to use it on a chart.