Learn the essentials of Pine Script to create custom trading indicators and strategies, enhancing your trading experience with personalized tools.

Pine Script is TradingView’s built-in programming language, designed to help traders create custom indicators and strategies with ease. Whether you’re automating strategies, testing ideas on historical data, or building advanced analysis tools, Pine Script is a must-know for traders. Here’s a quick breakdown:

• What It Is: A simple, market-focused coding language for TradingView.
• Why Use It:
  • Automate indicators and strategies.
  • Test trading ideas with historical data.
  • Access 100 000+ community scripts.
  • Save money by creating your own analysis tools.
• Getting Started:
  • Create a TradingView account.
  • Open the Pine Editor to write and test scripts.
  • Start with basic syntax such as plot(close).

Quick Example

//@version=5
indicator("My First Script")
plot(close)

This article covers everything from setup to creating custom indicators and strategies, with step-by-step examples, error-handling tips, and optimization ideas.

Pine Script Basics: How to Get Started

Setup and Basics

Start using Pine Script by setting up your TradingView account and learning its coding essentials. A solid foundation is key to creating effective trading tools.

TradingView Account Setup

Getting started with TradingView is simple. Follow these steps:

The Pine Editor provides instant feedback, letting you see your indicators directly on the chart.

Pine Script Basics

Every Pine Script starts with a header and at least one plotting function:

//@version=5
indicator("Variable Examples")

const PERIOD = 14                          // Immutable
threshold    = input.float(1.5, "Threshold")
var float highest = 0.0                    // Persists bar-to-bar

float myValue = na
if close != na
    myValue := close

Variables and Data Types

Key types include float, int, bool, string, and color. Control scope with const, var, and input.*.

Functions and Operators

geom_average(x, y) =>
    math.sqrt(x * y)    // True geometric mean

If–Else Statements

//@version=5
strategy("BBand LE Example", overlay = true)

length = input.int(20)
mult   = input.float(2.0)

basis = ta.sma(close, length)
dev   = mult * ta.stdev(close, length)
lower = basis - dev

if ta.crossover(close, lower)
    strategy.entry("BBandLE", strategy.long)
    strategy.exit("Stop", "BBandLE", stop = lower)

if ta.crossunder(close, lower)
    strategy.close("BBandLE")

Creating Indicators

Moving Average Example

//@version=5
indicator("Custom SMA", overlay = true)

// User inputs
len = input.int(20, "SMA Length", minval = 1)
src = input.source(close, "Source")

// Manual SMA for education
smoothMA(src, len) =>
    float sum = 0.0
    for i = 0 to len - 1
        sum += src[i]
    sum / len

smaVal = smoothMA(src, len)
plot(smaVal, "Custom SMA", color = color.blue, linewidth = 2)

Indicator Settings

//@version=5
indicator("Enhanced SMA", overlay = true)

var string GRP_CALC = "Calculation"
var string GRP_VIS  = "Visual"

len        = input.int(20,  "Length", group = GRP_CALC, minval = 1)
src        = input.source(close, "Source", group = GRP_CALC)
maType     = input.string("SMA", "Type", options = ["SMA","EMA","WMA"], group = GRP_CALC)

col        = input.color(color.blue, "Color", group = GRP_VIS)
width      = input.int(2, "Width", minval = 1, maxval = 4, group = GRP_VIS)

ma = switch maType
    "EMA" => ta.ema(src, len)
    "WMA" => ta.wma(src, len)
    =>      ta.sma(src, len)

plot(ma, "Enhanced MA", col, width)
alertcondition(ta.crossover(close, ma), "Bullish crossover", "Price crossed above the MA")

Trading Strategy Development

Trade Signals

//@version=5
strategy("Dual MA + RSI", overlay = true,
     default_qty_type = strategy.percent_of_equity,
     default_qty_value = 10)

fastLen = input.int(11, "Fast MA")
slowLen = input.int(50, "Slow MA")
rsiLen  = input.int(14, "RSI Length")
tpPct   = input.float(1.0, "TP %", minval = 0.1)
slPct   = input.float(1.0, "SL %", minval = 0.1)

fast = ta.sma(close, fastLen)
slow = ta.sma(close, slowLen)
rsi  = ta.rsi(close, rsiLen)

longCond  = ta.crossover(fast, slow)  and rsi > 50
shortCond = ta.crossunder(fast, slow) and rsi < 50

if longCond  and strategy.position_size <= 0
    strategy.entry("Long",  strategy.long)
    strategy.exit("L-TP/SL", "Long",
         limit = close * (1 + tpPct/100),
         stop  = close * (1 - slPct/100))

if shortCond and strategy.position_size >= 0
    strategy.entry("Short", strategy.short)
    strategy.exit("S-TP/SL", "Short",
         limit = close * (1 - tpPct/100),
         stop  = close * (1 + slPct/100))

Strategy Testing

Test your strategy across different market conditions, factoring in commissions, slippage, and realistic position sizing.

Strategy Improvement

atrVal          = ta.atr(14)
marketCondition = atrVal > ta.sma(atrVal, 20)

Advanced Tools and LuxAlgo Integration

To extend your analysis beyond raw Pine Script, LuxAlgo provides:

• Library — hundreds of free indicators for multiple charting platforms.
• Exclusive Toolkits on TradingView:
  • Price Action Concepts — automated support & resistance, trend-lines, and pattern detection.
  • Signals & Overlays — performance-based confirmation signals, refined sensitivity, and custom alerts.
  • Oscillator Matrix — money-flow analytics that complement shorter-term signals.
• Screeners & Backtesters for each toolkit, streamlining market scans and validation.
• AI Backtesting Assistant — LuxAlgo’s AI agent that auto-generates trading strategies at LuxAlgo.com/backtesting.

Next Steps

Master the basics of Pine Script, integrate advanced LuxAlgo features when needed, and iterate through disciplined backtesting and optimization. Regular practice and community engagement will accelerate your progress.

References

• TradingView – What is Pine Script?
• PineCoders Forum
• LuxAlgo AI Backtesting Assistant
• LuxAlgo – TradingView Getting Started Guide