Let us rewind and look back at some of the indicators/strategies published earlier.
1. Moving Average Candles - this is one of my favourite tool for general trend filtering. Applying supertrend on moving average candles is one of the easiest ways to find reversal in trending market without exiting positions too early. Few scripts published on this basis are:
MA Candles Supertrend
MA Candles Supertrend Strategy
2. VixFix and Linear Regression - this itself is combination of two indicators.
Williams-Vix-Fix-Finds-Market-Bottoms - by @ChrisMoody
Squeeze-Momentum-Indicator - by @LazyBear
I have combined these two indicators to derive VIX-Fix to find absolute market bottoms. More description here:
Now, in this strategy, we combine all these together.
- Derive moving average candles
- Derive momentum of moving average candles
- Derive on momentum
- Optionally, also calculate Fix and on VixFix momentum
To find market bottom:
There are two options
1. Use when momentum of MA candles hit bottom (red) and slowly turn up (orange). In aggressiveLong mode, signals are also generated when momentum starts going positive from negative.
2. Use Fix of MA candles as described in the original script of VixFixLinReg-Strategy
To find market top
Here only Ma candles momentum decreasing is used as signal. If looking for longTrades, exit signal is generated only when momentum is turning negative extreme(orange). Or else, exit signal is generated when momentum has turned neutral.
At this stage, it is very much experimental - use it with caution :)
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.
Join tradingview: https://www.tradingview.com/gopro/?share_your_love=sudh