HMA's + Trend Signals
The idea behind this script was to incorporate a few different moving average types into 1 indicator so multiple trading strategies could be implemented depending on Price Action. This indicator includes 3 HMA's, 2 user defined /SMA's, 1 (which also is used for the bar coloring), and Trend signals at the bottom of the chart (which are defined by the 1st MA). By default all of the Moving Averages are set to false because they aren't meant to be used together unless you so chose to. The only feauture initially being shown are the Trend signals at the bottom of the screen.
HMA's - The default lengths for the HMA's are 7, 14, and 21.
This is not Financial Advice nor am I saying this works all of the time but here are a few examples of how I've traded the HMA's... OF course thid depends on overall PA but the idea is to enter and exit when all
three HMA's turn Green or Red...
For quicker entries and exits, you could enter when the Fast crosses the Medium and exit when the it crosses back over/under the Medium .
For more of a swing trade and when there's definitely an established trend, I would stay in the trade until Fast crosses under the Slow , otherwise it might just be a normal retrace prior to making another move up.
When PA is ranging but not really trending in either direction, I'll use the Slow as somewhat of a Trailing SL.
The 2 user defined moving averages can either be an or . The 1st MA is set to the 200 by default, which also triggers the Trend signals at the bottom of the chart. The 2nd MA is set to the 6 by default.
The is set to 50 by default, which is also used for the bar coloring. Lastly, all of the MA's change color depending on the trend.
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.