Multi-Timeframe Price Change Signals Smoothed for Trend Trading

Summary

This script compares the selected price source with its value at the start of each four-hour, daily, weekly, and monthly interval. Each comparison is reduced to a positive, negative, or unchanged state, and the four states are added together. A 60-period simple moving average smooths that combined score. The script enters long when the smoothed score crosses above 2 and closes the position once the score turns negative; it enters short below -2 and closes that position once the score becomes positive. Background coloring also reflects strong positive or negative readings.

The page identifies the script as a BTCUSD trend strategy and includes its source, but offers no backtest settings, risk controls, or performance evidence. The thresholds and smoothing length are fixed in the code, and the approach’s behavior depends on chart resolution and the selected price source. It uses 100% of equity by default, so position exposure may be substantial; users would need to assess transaction costs, drawdowns, and out-of-sample behavior before drawing conclusions about its usefulness.

Key ideas

• The script measures price changes from the beginning of four-hour, daily, weekly, and monthly intervals.
• It converts each change into a directional state and sums the states into a combined signal.
• A 60-period moving average smooths the combined signal before threshold-based entries.
• Longs open above a positive threshold and close below zero; shorts use the corresponding negative thresholds.
• The page reports no backtest results or risk controls, and the strategy defaults to full-equity sizing.

Tags

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