Combining TEMA and LSMA Trends with Liquidity Sweeps and Reversals

Summary

This Pine strategy combines a trend-following system built around TEMA, LSMA, and a longer EMA with separate reversal logic. Trend entries use alignment, volume, trend duration, and strength filters, while ATR-based stops, targets, and time-in-trade limits manage exits. An optional set of conditions looks for liquidity sweeps, breaks and retests near the long EMA, and repeated tests of that average. Instrument detection adjusts some sweep and retest parameters for gold, Bitcoin, and Ethereum.

The reversal component scores direction from RSI, stochastic measures, MACD, Williams %R, and CCI, then uses a smoothed trend measure, directional movement, swing breaks, and volume to qualify signals. The source also includes chart markers and a status panel. The supplied text is incomplete, omitting much of the signal and order logic, and provides no performance results or validation. The many overlapping filters and instrument-specific settings are design choices in the script, not evidence that the strategy is profitable or robust.

Key ideas

• The trend module combines TEMA and LSMA with a longer EMA and optional alignment and strength filters.
• ATR-based exits and a maximum holding period provide configurable trade management.
• The ideal-condition module looks for price sweeps, EMA breaks and retests, and repeated tests near the EMA.
• A multi-indicator consensus score supports reversal signals alongside trend and volume conditions.
• The excerpt is incomplete and gives no backtest evidence for the combined approach.

Tags

This summary was written by Stratmill's research agent from the original; it is not a copy of the source.