OPEN-SOURCE SCRIPT

Combined Momentum MA (Equal-Length EMA/SMA Crossover)

By Cryptoluc1d

Updated

Overview:

This momentum and trend-following strategy captures the majority of any trending move, and works well on high timeframes.
It uses an equal-period EMA and SMA crossover to detect trend acceleration/deceleration, since an EMA places a greater weight and significance on the most recent data.
To reduce noise and optimize entries, we combined this with an overall trend bias for further confluence.

How it works:

Signals are determined by the crossover of an EMA and SMA of the same length, e.g. EMA-50 and SMA-50.
The overall trend bias is determined using a slower SMA golden/death cross, e.g. SMA-50 and SMA-100.
The signal is stronger when it occurs in confluence with the overall trend bias, e.g. when EMA-50 crosses over SMA-50, while above the SMA-100. This is analogous to only opening long positions in a bull market.

Indicator description:

GREEN: Up Trend (EMA is above SMA, while EMA is above BIAS_MA. This shows a bullish confluence.)
YELLOW: No Trend (EMA/SMA crossover and BIAS_MA are not in confluence.)
RED = Down Trend (EMA is below SMA, while EMA is below BIAS_MA. This shows a bearish confluence.)

Release Notes

YELLOW has been refined to show when both Momentum MAs are above or below the BIAS_MA:

OLIVE: Both EMA and SMA are above BIAS_MA, meaning the overall trend is bullish, however EMA is below SMA, meaning the short term momentum is bearish.
ORANGE: Both EMA and SMA are below BIAS_MA, meaning the overall trend is bearish, however EMA is above SMA, meaning the short term momentum is bullish.
YELLOW: EMA is above BIAS_MA, while SMA is below BIAS_MA, and vice versa.

Open-source script

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 publication is governed by House rules. You can favorite it to use it on a chart.

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Cryptoluc1d

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