ESSMA

Concept: There are a large number of moving averages available. However, they are effective differently. Trends confirmation and follow through requires a large number of moving averages to be used differently. The…

Pine ScriptBreakout Trend following EMA SMA ATR

Author: ChaoZhang
Complexity: Intermediate · 87 lines
Parameters: 9
Backtest bar: 1h · intraday
Tested on: BTC/USDT · futures

Jump to code View in vault Original on FMZ

Concept:

There are a large number of moving averages available.

However, they are effective differently.

Trends confirmation and follow through requires a large number of moving averages to be used differently.

The concept here is to generate a combination moving average, each MA type can be weighted to provide a higher degree of confirmation of trend.

The weights are configurable in settings, and as a sample 50 length has been used.

ATR did not produce good result, so has been kept as optional.

The source can be modified.

The indicator provides a good Resistance support value in the larger time frame. And also provides a breakout and breakdown indication. Follow through is mostly effective.

The alert condition has been made such that it can directly be ported to discord.

For alerts one must configure their own message.

Happy trading.

Parameters

Name	Default	What it controls
v_input_1_close	0	(?Source)Source: close \| high \| low \| open \| hl2 \| hlc3 \| hlcc4 \| ohlc4
v_input_2	50	(?Length)Length1
v_input_float_1	2	(?Weights)SMA Weight
v_input_float_2	2	EMA Weight
v_input_float_3	2	WMA Weight
v_input_float_4	2	SMMA Weight
v_input_float_5	2	RMA Weight
v_input_bool_1	false	(?ATR)Use ATR
v_input_int_1	14	ATR Length

Source Pine Script

/*backtest
start: 2022-04-11 00:00:00
end: 2022-05-10 23:59:00
period: 1h
basePeriod: 15m
exchanges: [{"eid":"Futures_Binance","currency":"BTC_USDT"}]
*/

// This source code is subject to the terms of the Mozilla Public License 2.0 at https://mozilla.org/MPL/2.0/
// © bhavishya

//@version=5
indicator("ESSMA", overlay=true)
//inputs
source = input(close, "Source", group="Source")
length1 = input(50, "Length1", group = "Length")


w1 = input.float(2.0, "SMA Weight", group="Weights")
w2 = input.float(2.0, "EMA Weight", group="Weights")
w3 = input.float(2.0, "WMA Weight", group="Weights")
w4 = input.float(2.0, "SMMA Weight", group="Weights")
w5 = input.float(2.0, "RMA Weight", group="Weights")


useatr = input.bool(false, "Use ATR", group="ATR")

atrLen    = input.int(title="ATR Length", defval=14, group="ATR")

// functions

smma(src, length) =>
	smma =  0.0
	smma := na(smma[2]) ? ta.sma(src, length) : (smma[2] * (length - 1) + src) / length
	smma

essma(src,length) => 
    essma = 0.0
    
    smma = smma(src * w4,length) 
    ema = ta.ema(src * w2, length) 
    sma = ta.sma(src * w1, length) 
    wma = ta.wma(src * w3, length) 
    rma = ta.rma(src * w5, length) 
    
    essma := (smma/w4+ema/w2+sma/w1 - wma/w3 - rma/w5 + open + close)/(3) 
    essma
// calucations

// atr and MAs

atr = ta.atr(atrLen)

usesource = useatr ? atr : source

essma1 = essma(usesource, length1)
sessma1 = ta.wma(essma1, length1)
// plots


p1 = plot(essma1, "ESSMA", color.green)

ps1 = plot(sessma1, "ESSMA Smooth", color.red)

bool up = na
bool down = na

if (ta.crossover(essma1,sessma1))
    up := true
    
    
if (ta.crossunder(essma1, sessma1))
    down := true
    
plotshape(up, style=shape.labelup, location = location.belowbar, color=color.lime, text="B", textcolor=color.black)
plotshape(down, style=shape.labeldown, location = location.abovebar, color=color.orange, text="S", textcolor=color.black)


// alerts

alertcondition(up, "ESSMA UP", '{"content":"ESSMA BUY @ {{close}}" : "{{ticker}} int : {{interval}} - essma : {{plot_0}} / sessma {{plot_1}}"}')
alertcondition(down, "ESSMA DOWN", '{"content":"ESSMA SELL @ {{close}}" : "{{ticker}} int : {{interval}} -  essma :{{plot_0}} /sessma : {{plot_1}}"}')

if up
    strategy.entry("Enter Long", strategy.long)
else if down
    strategy.entry("Enter Short", strategy.short)

Published by ChaoZhang on the FMZ strategy square · last modified 2022-05-12. Collected in the Quant Trading Vault. Unvalidated research: re-test with your own data and costs before trusting it.

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Source Pine Script

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