SMA Crossover Signals

SMA Crossover Signals (50/100/200)OverviewThis script provides a clear and simple way to visualize key trend-following signals using three essential Simple Moving Averages (SMAs). It is designed to help traders quickly identify shifts in market momentum by plotting the 50, 100, and 200-day SMAs and marking significant crossover events directly on your chart.This tool is perfect for traders who use moving average crossovers as a core component of their strategy.FeaturesThree Key SMAs: The script plots the following moving averages, which are fundamental for both short-term and long-term trend analysis:50-day SMA: Plotted in Yellow. Represents the medium-term trend.100-day SMA: Plotted in Blue. Represents the intermediate long-term trend.200-day SMA: Plotted in Green. Represents the long-term market trend.Crossover Signals: The script automatically identifies and labels two key types of crossover events to signal potential entry or exit points:B1 (Bullish Signal): A green "B1" label appears below the price bar when the 50-day SMA crosses above the 200-day SMA. This is commonly known as a "Golden Cross" and is often interpreted as a strong, long-term bullish signal.D1 (Bearish Signal): A red "D1" label appears above the price bar when the 50-day SMA crosses below the 200-day SMA. This is known as a "Death Cross" and is often seen as a strong, long-term bearish signal.B2 (Bullish Signal): A slightly transparent green "B2" label appears below the price bar when the 50-day SMA crosses above the 100-day SMA, indicating a potential shorter-term shift to bullish momentum.D2 (Bearish Signal): A slightly transparent red "D2" label appears above the price bar when the 50-day SMA crosses below the 100-day SMA, indicating a potential shorter-term shift to bearish momentum.How to Use This ScriptTrend Confirmation: Use the SMAs to gauge the overall market trend. When the price is above the 200-day SMA (green line), the long-term trend is generally considered bullish. When it's below, the trend is bearish.Entry/Exit Signals:The B1 (Golden Cross) can be used as a signal to consider entering a long position or as confirmation of an existing uptrend.The D1 (Death Cross) can be used as a signal to consider entering a short position, exiting a long position, or as confirmation of a new downtrend.The B2 and D2 signals provide earlier indications of a potential change in momentum and can be useful for more active traders.Combine with Other Indicators: For best results, use these crossover signals in conjunction with other technical indicators, such as the RSI for momentum or Volume for confirmation of a move.DisclaimerThis script is an educational tool and should not be considered financial advice. Trading involves risk, and past performance is not indicative of future results. Always conduct your own research and risk management before making any trading decisions.