LRS-Strategy: 200-EMA Buffer & Long/Short Signals This indicator is designed to help traders implement the Leveraged Return Strategy (LRS) using the 200-day Exponential Moving Average (EMA) as a key trend-following signal. The indicator offers clear long and short signals by analyzing the price movements relative to the 200-day EMA, enhanced by customizable buffer zones for increased precision.
Key Features: 200-Day EMA: The main trend indicator. When the price is above the 200-day EMA, the market is considered in an uptrend, and when it is below, it indicates a downtrend. Customizable Buffer Zones: Users can define a percentage buffer around the 200-day EMA (default is 3%). The upper and lower buffer zones help filter out noise and prevent premature signals. Precise Long/Short Signals: Long Signal: Triggered when the price moves from below the lower buffer zone, crosses the 200-day EMA, and then breaks above the upper buffer zone. Short Signal: Triggered when the price moves from above the upper buffer zone, crosses the 200-day EMA, and then breaks below the lower buffer zone. Alternating Signals: Ensures that a new signal (long or short) is only generated after the opposite signal has been triggered, preventing multiple signals of the same type without a reversal. Clear Visual Aids: The indicator displays the 200-day EMA and buffer zones on the chart, along with buy (long) and sell (short) signals. This makes it easy to track trends and time entries/exits. How to Use: Long Entry: Look for the price to move below the lower buffer, cross the 200-day EMA from below, and then break out of the upper buffer to confirm a long signal. Short Entry: Look for the price to move above the upper buffer, cross below the 200-day EMA, and then break below the lower buffer to confirm a short signal. This indicator is perfect for traders who prefer a structured, trend-following approach, using clear rules to minimize noise and identify meaningful long or short opportunities.