Trend Following with Moving Averages

Hello Traders,

With the info "Trend is Your Friend", you should not take position against the trend. This script checks multipte moving averages if they are above/below the closing price and try to find trend. The moving averages with the length 8, 13, 21, 34, 55, 89, 144, 233, 377 used. these are fibonacci numbers, but optionally you can change the lengths of each moving averages. while it's green you better take long positions, while it's red you better take short positions according to other indcators or tools.

Optionally you have "smoothing" option to get rid of whipsaws. it's enabled by default.

You have option to use following moving average types: EMA , SMA , RMA, WMA , VWMA . by default it's EMA

Also the script has "Resolution" option. with this option you can get the trend for other time frames, in following example 1h was set as for higher time frame on 15m chart:

This should not be used as buy/sell signal indicators as it's tries to find trend but not entry points, you should use other indicators (such RSI , Momentum) or other tools to find buy/sell signals.

Informacje o Wersji: arrays used
transp removed
Informacje o Wersji: smoothing part improved

Skrypt open-source

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.

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