TQQQ Framework v6

This script is a simple trend‑following framework for trading TQQQ that combines long‑term bias, short‑term momentum, and mean reversion into one visual tool. It plots three moving averages (250‑SMA, 50‑SMA, 21‑EMA), colors the background by trend regime, and prints buy markers when price regains momentum in a bullish environment.

What it does
Uses a 250‑period SMA as the structural “bull/bear regime” filter, only looking for longs when price is above this line.

Uses a 21‑period EMA as the short‑term momentum line, turning green when price is above it and red when price is below it.

Uses a 50‑period SMA as a mean‑reversion reference level, plotted as a softer blue band for pullback zones.

Visual cues
Background turns green when price is above the 250‑SMA (TQQQ bullish focus) and red when below it (implying SQQQ or defensive stance).

The 21‑EMA color shifts dynamically (green/red), giving an immediate read on short‑term momentum without extra indicators.

Signal logic
Generates a buy signal only when:

The market is in a bullish regime (close > 250‑SMA), and

Price crosses back above the 21‑EMA, indicating momentum has resumed after weakness.

Marks this event with a triangle below the bar and exposes an alert condition so it can trigger TQQQ buy alerts automatically.

Related

Summarize main strategy rules in the script

List all user-configurable inputs and defaults

Explain allocation and position sizing logic used

Describe the risk management and stop rules

Identify indicators and formulas implemented in code