If both moving averages are directed upwards, it 's uptrend.
If both moving averages are pointing down, it 's downtrend.
If the moving averages are directed in different directions, the trend has not changed.
Lime color is uptrend.
Red color is downtrend.
By default, background display is disabled, but you can enable it in script settings.
If uptrend (lime background) - open long position (and close short position)
If downtrend (red background) - open short position (and close long position)
Reverse trading, no stop-loss and take-profit
Short positions can be removed and only long positions can be traded.
- crypto/USD (XBT/USD, ETH/USD, etc)
- timeframes: 1h, 4h, 1d
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in a publication is governed by House Rules. You can favorite it to use it on a chart.
Please elaborate on first part of your description;
"The strategy uses 2 moving averages. Fast and slow. SMA or EMA - the user can select. Moving averages are needed to identify the direction of the trend."
Would we be using the SAME moving average, or DIFFERENT moving averages (SMA/EMA) ?