Buy/Sell Signals

The Buy/Sell Signals indicator is a trend-following tool that generates entry signals based on the confluence of moving average crossovers, Bollinger Bands positioning, and volatility-based filters. It is designed to identify momentum shifts while providing a comprehensive performance table to track historical results on the current chart view.

Usage

The indicator generates Buy and Sell labels on the chart based on the interaction between a Fast and Slow Moving Average. A Buy signal occurs when the price is above both MAs and satisfies specific volatility and Bollinger Band conditions. Conversely, a Sell signal occurs when the price is below both MAs under similar filtered conditions.

Users can utilize the dashboard to monitor real-time performance metrics, including the number of trades, total profit/loss points, and percentage returns compared to a Buy & Hold strategy. The calculation range for these statistics is determined by the visible bars on the chart.

Details

The script combines several technical layers to ensure signals are not just based on simple crossovers:

• Trend Confirmation: Uses two modifiable moving averages (Fast and Slow) with selectable types (SMA, EMA, RMA, WMA).
• Bollinger Band Filter: Checks the slope of the upper and lower bands to ensure the trade aligns with expanding or trending volatility.
• Range & Distance Filters: These filters prevent entries when the price is too close to the moving averages or when the candle range is disproportionate to the moving average spread, helping to filter out "choppy" price action.

Settings

Moving Averages

• Fast-MA: Sets the period for the faster moving average.
• Type (Fast): Selects the calculation method (SMA, EMA, RMA, WMA) for the fast MA.
• Slow-MA: Sets the period for the slower moving average.
• Type (Slow): Selects the calculation method for the slow MA.

Bollinger Bands & Filters

• BB-Basis: Sets the period for the Bollinger Band baseline.
• Multi: The standard deviation multiplier for the bands.
• Bollinger Bands Lookback Trend Filter: Enables/disables the requirement for the bands to be trending in the direction of the trade.
• High-Low vs Candle Range Threshold %: Filters signals based on the ratio of the MA spread to the candle range.
• Distance from Fast or Slow MAs Threshold %: Ensures the price has sufficient distance from the averages before a signal is confirmed.

FAQ

How do I use the dashboard?

The dashboard automatically calculates results based on the visible range of your chart. As you scroll or zoom, the statistics for trades, points, and win rates will update to reflect the visible data.

Can I change the signal frequency?

Yes, by adjusting the Fast-MA and Slow-MA periods, or by tweaking the Filter thresholds (Range and Distance), you can make the indicator more or less sensitive to market moves.

How do I access Buy/Sell Signals?

You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.