This is a indicator based on the and the distance between the current price and the .
The signal gets triggered if the current (with default settings) is under 0 and the Distance from the gets smaller if under or gets bigger if over . In edition you can set a max distance from the .
This indicator was invented for buy and hold strategys only.
I invented this indicator to find better entrys for my saving plans on the MSCI WORLD AND MSCI EMERGING MARKETS on the 1 day timeframe.
Instead of investing every month, i only invest on the green Arrow Signal.
For example, lets say there is no buy signal for 3 months, then i invest the summary of the three months on the buy signal.
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.
1.02.01.19 invest 1x100$
2.14.05.19 4x100=400 (Because you kept your spare rate for 4 months)
3. 04.06.19 1x100
4. 06.08.19 2x100=200
5. 26.02.20 6x100=600
6. 02.03.20 1x100
8. 03.08.20 4x100=400
9. 22.09.20 1x100
The entrys won't be perfect all the time, but i backtested this since 2014 and it got an better performance than buying on the first of every month.
I hope this answered your question.