Buy/Sell Signals

The Buy/Sell Signals indicator is a trend-following tool designed to identify potential trend changes and generate actionable entry signals while filtering out market noise. It utilizes a combination of dual moving averages, Bollinger Bands, and specific volatility filters to provide clear visual cues and real-time performance tracking on the chart.

Usage

The indicator generates buy and sell labels based on the confluence of price action relative to moving averages and volatility bands. A buy signal is triggered when the price crosses above both the fast and slow moving averages, provided volatility and trend filters are met. Conversely, a sell signal occurs when the price drops below both averages under similar filtered conditions.

One of the primary features is the integrated performance table. This table provides a "What You See Is What You Get" (WYSIWYG) analysis of the signals currently visible on your chart. It calculates total trades, profit/loss in points, and percentage gains for both buy and sell signals. Crucially, it includes a "Buy & Hold" (B&H) comparison, allowing users to evaluate the strategy's effectiveness against a simple holding position starting from the first buy signal.

Details

The script executes logic based on several technical components:

• Trend Confirmation: It uses a dual moving average system (Fast and Slow) to establish the primary trend direction.
• Volatility Control: Bollinger Bands are utilized to ensure signals are generated during periods of significant price movement rather than consolidation.
• Advanced Filtering: To reduce false signals, the script includes a Bollinger Bands lookback trend filter, which checks if the bands are expanding or trending in the direction of the trade. It also evaluates the candle range relative to the distance between moving averages and the price distance from those averages to prevent entering trades that are overextended.

Settings

Moving Averages

• Fast-MA / Slow-MA: Sets the period for the dual moving average system.
• Type: Allows selection between SMA, EMA, RMA, and WMA for both moving averages.

Bollinger Bands

• BB-Basis: The length for the Bollinger Bands baseline.
• Multi: The standard deviation multiplier for the bands.

Filters

• Bollinger Bands Lookback Trend Filter: Enables a filter that checks the band direction over a specific lookback period.
• High-Low vs Candle Range Threshold %: A filter that evaluates the relationship between price range and moving average separation.
• Distance from Fast or Slow MAs Threshold %: Prevents signals if the price is too far from (or too close to) the moving averages based on a percentage threshold.

Display

• Table Position: Adjusts the location of the performance table on the chart.

FAQ

How do I use the performance table?

The table updates automatically based on the date range currently visible on your screen. You can scroll or zoom the chart to see how the signals performed during specific historical market conditions.

Can I change the moving average types?

Yes, the settings allow you to toggle between SMA, EMA, RMA, and WMA to better suit different asset classes or timeframes.

How can 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.