Snapshots
How it works
- An ATR trailing stop (length 10, multiplier 3) only ratchets in the trend's direction and flips when a candle closes through it.
- A 200 EMA acts as referee: a flip only becomes a signal when price is on the same side of the EMA, otherwise the candle is painted grey.
- Every signal is gated on barstate.isconfirmed, so BUY and SELL labels and alerts only fire on closed candles.
Settings
| Setting | Default | What it does |
|---|---|---|
| ATR length | 10 | ATR period for the trailing line |
| ATR multiplier | 3.0 | Distance of the trail from price, in ATRs |
| Trend EMA length | 200 | The referee EMA |
| Only signal with the EMA trend | true | Turn the EMA referee on or off |
| Bull colour / Bear colour | teal / red | Colours of the trail, shading and labels |
Source code
In TradingView: open the Pine Editor, create a new indicator, paste the code, then click "Add to chart".
//@version=6 // Signal Forge, part 1: the core engine. By Jayadev Rana. indicator("Signal Forge", overlay = true) // 1. Inputs: how far the trail sits, and the trend baseline atrLen = input.int(10, "ATR length", minval = 1) atrMult = input.float(3.0, "ATR multiplier", minval = 0.5, step = 0.1) emaLen = input.int(200, "Trend EMA length", minval = 1) useEma = input.bool(true, "Only signal with the EMA trend") bullCol = input.color(#26a69a, "Bull colour") bearCol = input.color(#ef5350, "Bear colour") // 2. Volatility and trend atr = ta.atr(atrLen) ema = ta.ema(close, emaLen) // 3. The trail: it only ever moves in the trend's favour longStop = close - atrMult * atr shortStop = close + atrMult * atr var float trail = na var int dir = 1 if na(trail) trail := longStop else if dir == 1 trail := math.max(trail, longStop) if close < trail dir := -1 trail := shortStop else trail := math.min(trail, shortStop) if close > trail dir := 1 trail := longStop // 4. Draw the trail by direction, and shade it to price upLine = dir == 1 ? trail : na dnLine = dir == -1 ? trail : na pMid = plot(hl2, "Mid", display = display.none) pUp = plot(upLine, "Bull trail", bullCol, 2, plot.style_linebr) pDn = plot(dnLine, "Bear trail", bearCol, 2, plot.style_linebr) fill(pMid, pUp, color.new(bullCol, 85), "Bull zone") fill(pMid, pDn, color.new(bearCol, 85), "Bear zone") plot(ema, "Trend EMA", color.orange, 2) // 5. Candles: coloured when trail and EMA agree, grey when not bullOk = dir == 1 and (not useEma or close > ema) bearOk = dir == -1 and (not useEma or close < ema) barcolor(bullOk ? bullCol : bearOk ? bearCol : color.gray) // 6. Raw signals: a flip, with the trend, on a CLOSED candle only flipUp = dir == 1 and dir[1] == -1 flipDown = dir == -1 and dir[1] == 1 rawBuy = flipUp and bullOk and barstate.isconfirmed rawSell = flipDown and bearOk and barstate.isconfirmed // 7. Markers and alerts. For now, buy is simply the raw signal buy = rawBuy sell = rawSell plotshape(buy, "BUY", shape.labelup, location.belowbar, bullCol, text = "BUY", textcolor = color.white, size = size.small) plotshape(sell, "SELL", shape.labeldown, location.abovebar, bearCol, text = "SELL", textcolor = color.white, size = size.small) alertcondition(buy, "Signal Forge BUY", "BUY {{ticker}} at {{close}}") alertcondition(sell, "Signal Forge SELL", "SELL {{ticker}} at {{close}}")
Watch it built
This script is written and explained step by step in the video lesson.
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