Overview of the Moving Average Crossover Strategy with Price Filter: Moving Averages:
Fast MA (10-period) and Slow MA (20-period) help track short-term and medium-term price trends. Buy Signal:
Occurs when the price closes above both MAs, indicating a strong uptrend. Alternatively, if the Fast MA crosses above the Slow MA, a buy signal is also triggered. The strategy avoids back-to-back buy signals (only triggered after a previous sell). Sell Signal:
Occurs when the price closes below both MAs, indicating a potential reversal or downtrend. Alternatively, if the Fast MA crosses below the Slow MA, a sell signal is also triggered. The strategy avoids back-to-back sell signals (only triggered after a previous buy). Signal Alternation:
The script ensures that a buy is only followed by a sell and vice versa to prevent excessive signals. Goal:
The strategy seeks to capture sustained trend movements by relying on both MA crossovers and price positioning relative to the moving averages. This strategy is designed for trend-following, reducing noise from false signals while ensuring clear entries and exits.