This script is designed to identify Pin Bar patterns on a price chart and generate buy/sell signals based on additional filters such as SMA, Bollinger Bands, RSI, and MACD. It also includes optional stop-loss and take-profit levels. Below is a breakdown of the script's functionality:
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**Key Features**
1. **Pin Bar Detection**:
- **Bullish Pin Bar**: Lower shadow is at least twice the size of the upper shadow and body.
- **Bearish Pin Bar**: Upper shadow is at least twice the size of the lower shadow and body.
2. **Filters**:
- **SMA Filter**: Ensures the price is above/below the SMA for buy/sell signals.
- **Bollinger Bands Filter**: Ensures the price is below the lower band for buy signals or above the upper band for sell signals.
- **RSI Filter**: Ensures RSI is oversold for buy signals or overbought for sell signals.
- **MACD Filter**: Ensures the MACD line is above the signal line for buy signals or below for sell signals.
3. **Stop Loss and Take Profit**:
- Calculates stop-loss and take-profit levels as a percentage of the entry price.
- Visualizes these levels on the chart.
4. **Visual and Audio Alerts**:
- Plots buy/sell signals on the chart.
- Triggers alerts for buy/sell signals.
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**Inputs**
- **Enable/Disable Filters**: Allows users to toggle SMA, Bollinger Bands, RSI, and MACD filters.
- **SMA Length**: Period for the Simple Moving Average.
- **Bollinger Bands Settings**: Length and standard deviation for Bollinger Bands.
- **RSI Settings**: Length, overbought, and oversold levels.
- **MACD Settings**: Fast, slow, and signal lengths.
- **Stop Loss & Take Profit**: Percentage levels for SL and TP.
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**Calculations**
1. **SMA**: Calculates the Simple Moving Average.
2. **Bollinger Bands**: Computes the basis (SMA), standard deviation, and upper/lower bands.
3. **RSI**: Calculates the Relative Strength Index.
4. **MACD**: Computes the MACD line, signal line, and histogram.
5. **Pin Bar Conditions**: Determines bullish and bearish Pin Bars based on shadow and body sizes.
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**Signals**
- **Buy Signal**: Bullish Pin Bar + SMA filter (if enabled) + Bollinger Bands filter (if enabled) + RSI filter (if enabled) + MACD filter (if enabled).
- **Sell Signal**: Bearish Pin Bar + SMA filter (if enabled) + Bollinger Bands filter (if enabled) + RSI filter (if enabled) + MACD filter (if enabled).
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**Visualization**
- **Buy/Sell Signals**: Labels are plotted on the chart for buy/sell signals.
- **SMA and Bollinger Bands**: Plotted on the chart if enabled.
- **Stop Loss and Take Profit**: Stepped lines are plotted on the chart if enabled.
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**Alerts**
- Triggers an alert when a buy or sell signal is detected.
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**Usage**
1. Add the script to your TradingView chart.
2. Customize the input settings (e.g., SMA length, RSI levels, etc.).
3. Enable/disable filters as needed.
4. Monitor buy/sell signals and SL/TP levels on the chart.
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**Example Scenario**
- If a bullish Pin Bar forms, the price is above the SMA, below the lower Bollinger Band, RSI is oversold, and MACD line is above the signal line, a buy signal is generated. The script will plot a "BUY" label, trigger an alert, and display the stop-loss and take-profit levels.
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**Improvements**
1. **Additional Filters**: Add more indicators (e.g., Volume, ATR) for better signal confirmation.
2. **Customizable Alerts**: Allow users to customize alert messages.
3. **Backtesting**: Integrate backtesting functionality to evaluate the strategy's performance.
4. **Multi-Timeframe Analysis**: Add support for multi-timeframe analysis.
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This script is a robust tool for traders who use Pin Bars in combination with other technical indicators to make informed trading decisions.
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