I love trading indicators. I enjoy coding my own and learning from other coders about strategies they are working on systematizing. Over the past few years I've been spending my free time learning Pine Script (TradingView's native language) because it's quickly become my favorite charting platform. From time to time, I stumble across scripts from other traders that catch my eye. In this post, I want to review a great script that I've recently come across.
SWING TRADE SIGNALS by Nicks1008 on TradingView
Type: Swing Trading
Signals: Buy/Sell Signals + Potential trend exhaustion arrow + Colored trend line
Timeframe: Author recommends 1 hour candles
Someone sent me this script a while back and I didn't have time to look into it. I've recently been playing catch-up on emails and decided to check it out. Although I primarily focus on day trading futures, I also enjoying systematic swing trading so this script immediately intrigued me. What initially stood out to me was the multiple signals. Most scripts are binary (buy or sell), but TradingView user Nicks1008 added a couple extra features into this script that I really like.
The first and most obvious signal is the overall Red/Yellow/Green trend line. This visual instantly shows us where we are in the big picture, i.e. in an uptrend, consolidating, or a down trend. The line color is based on a Simple Moving Average (SMA), and the standard input is set to 50 (but it's adjustable).
The Buy/Sell signals are based on Exponential Moving Average (EMA) and SMA crossovers. The standard input for the EMA is 5.
You'll also notice tiny green up/down arrows that the indicator prints. These are based on RSI extremes (>85 & <15) that indicate a likely exhaustion point where price is may see a swift reversal. I think this is a simple yet cool addition to the script. Say you're in a swing position riding the colored line trend...the green arrows represent a good place to either book some profit or maybe hedge with options in the opposite direction of the trend.
Overall, I think this is a really nice script that utilizes incredibly simplistic inputs to produce a clean result. Trading doesn't have to be complicated to be good, P/L is all that matters. My hats off to Nicks1008, I think this is one of the better Swing Trading scripts on TradingView I've come across and kudos to the person that DMd me about it. I definitely added it to my Favorite's list. If you're a Swing Trader, I suggest checking it out for yourself. As I mentioned, this isn't an incredibly complicated script, but sometimes it's nice to have a visual reminder of where we are at within a trend and where the price action might be hitting an exhaustion point. The author recommends using this on a 1hr time frame, but the charts I posted are all daily candles, which is what I would use for Swing Trading.
Happy Trading,
Horse