Buy and Sell Signals Example

ieri

//version=5
indicator("Buy and Sell Signals Example", overlay=true)

// Input parameters for the moving averages and RSI
rsiLength = input.int(14, title="RSI Length")
rsiOverbought = input.int(70, title="RSI Overbought Level")
rsiOversold = input.int(30, title="RSI Oversold Level")
shortMaLength = input.int(50, title="Short MA Length")
longMaLength = input.int(200, title="Long MA Length")

// Calculate the RSI and moving averages
rsi = ta.rsi(close, rsiLength)
shortMa = ta.sma(close, shortMaLength)
longMa = ta.sma(close, longMaLength)

// Define Buy and Sell conditions
buyCondition = rsi < rsiOversold and shortMa > longMa // RSI is oversold and short MA is above long MA
sellCondition = rsi > rsiOverbought and shortMa < longMa // RSI is overbought and short MA is below long MA

// Plot Buy and Sell signals on the chart
plotshape(series=buyCondition, location=location.belowbar, color=color.green, style=shape.labelup, title="Buy Signal", text="BUY")
plotshape(series=sellCondition, location=location.abovebar, color=color.red, style=shape.labeldown, title="Sell Signal", text="SELL")

// Strategy logic for backtesting (optional)
strategy.entry("Buy", strategy.long, when=buyCondition)
strategy.exit("Sell", from_entry="Buy", when=sellCondition)

// Plotting moving averages for visual reference
plot(shortMa, color=color.blue, title="Short MA")
plot(longMa, color=color.orange, title="Long MA")