This script uses concept of ichmok cloud to SMA . ( But the details are different ) It is useful for 1-3 month swing trading (if open market is 5days in a week). * Cloud
Simple Moving Average ( SMA ) 20 days & 60 days were used to make cloud region( green, red cloud )
- 20 days, 60days SMA were translated to 20days future from now ( =SMA Leading span 1,2 )
- if 20days sma > 60days sma => green - if 20days sma < 60days sma => red
- if close price < cloud => The bigger red cloud means stronger resistance - if close price > cloud = > The bigger green cloud means stronger support
* Leading Span (Most important)
Instead of using lagging span, I used leading span. We can predict 20 days sma's direction with this leading span & current price(close price)
- if close price makes Dead Cross over leading span & close price < 20days sma
=> 20days sma heading down soon
- if close price makes Golden Cross over leading span & close > 20days sma
=> 20days sma heading up soon
* buy
Buy IF 20days sma heading up soon & close price >= green cloud ( even better if 20days sma >= 60days sma )
OR IF 20days sma heading up soon & close price < red cloud & cloud is small ( low success rate )
+ 60days SMA : orange line
+ leading span : black line