Options Flavour by Raushan Shrivastava

kelmarin

This script is for a trading strategy which combines Pivot Points and a Simple Moving Average.

It calculates support and resistance levels based on the monthly pivot point and plots them on the chart.

The script also creates conditions for entering bullish and bearish trades based on the relationship between the price and moving average.

Breakdown of the main components of the script :-

Pivot Point Calculation:

The script calculates the monthly pivot point and its associated support (S1, S2, S3) and resistance (R1, R2, R3) levels.

These levels are used to determine potential areas of interest on the chart.

Moving Average:

A simple moving average (SMA) is plotted with a length defined by the user (length_ma), used to spot trends.

Conditions for Bullish and Bearish Signals:

Bullish condition: The label appears when the market crosses the moving average upward and is above the pivot, or when the market crosses the pivot upward and is above the moving average.

Bearish condition: The label appears when the market crosses the moving average downward and is below the pivot, or when the market crosses the pivot downward and is below the moving average.

Plotting Shapes:

The pivot point, support, resistance, and previous month's high/low values are plotted on the chart as circles.

The moving average is plotted as a black line.

Labels:

Labels are placed to indicate when a bullish or bearish condition occurs. These labels appear when the conditions are met, helping visualize trading signals.

This strategy can be useful for traders who wish to combine multiple technical indicators to make more informed decisions. You can adjust the parameter for moving average length to fine-tune the strategy for different time frames and market conditions.