8.1 Introduction to Technical Indicators
Technical indicators are mathematical calculations based on price and volume data. They help traders and investors make informed decisions by providing insights into market trends, momentum, and volatility.
8.2 Built-in Indicators in Pinescript
Pinescript provides built-in functions for many popular technical indicators, such as moving averages, RSI, MACD, and more. You can use these functions in your script to create custom studies or strategies:
sma = ta.sma(close, 50)
ema = ta.ema(close, 200)
rsi = ta.rsi(close, 50)
atr = ta.atr(14)
macd = ta.macd(close, 14, 6 ,2)
8.3 Combining Indicators for Analysis
You can combine multiple indicators in your Pinescript code to create more sophisticated studies or strategies. For example, you can use moving averages and RSI to create a simple crossover strategy:
smaValue = ta.sma(close, 14)
rsiValue = ta.rsi(close, 14)
longCondition = ta.crossover(rsiValue, 30) and ta.crossover(close, smaValue)
shortCondition = ta.crossunder(rsiValue, 70) and ta.crossunder(close, smaValue)
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