165# TMA Overlay for TradingWiew -TradingView Strategy
Trend following strategy
Submit by Tommy Gun
In this short article I address the question of a possible use among the many of the TMA Bands Overlay, a custom indicator of the TradingView platform. The interpretation I show is trend following but it could also be used as a trend-reversal trading method. Here, therefore, I address the issue of how to use this indicator to generate signals in the direction of the trend.
I look at the combination of two
types of TMA from a non-algortmic graphical point of view.
The trend is determined by the crossing of two moving averages of the TMAs. When the gray line is greater than the black one, the trend is upward, and, therefore, only the bullish signals are considered, when the gray line is less than the black one, only the bearish signals are evaluated.
The buy and sell signals seen on the chart are generated by the TMA Overlay.
Time frame 15 minutes or higher. Best higher time frames.
Currency pairs any.
Trade only in the direction of the
Trend up gray line> black line.
Trend down gray line less than black.
Trend up + buy arrow.
Trend down + sell arrow.
Place initial stop loss at the previous swing high/low.
Profit target at opposite signal or when there is the opposite intersection of the gray line with the black one.
Exmples of trades.