How to create Trading Strategy with MACD and MA Indicators in TradingView Pine Script

In this video below, I provide a comprehensive tutorial on creating a trading strategy using MACD (Moving Average Convergence Divergence) and Moving Average indicators in TradingView's Pine Script v5. I begin by setting up the strategy parameters, including input variables for MACD's fast period, slow period, and signal period, as well as the period for the Simple Moving Average (SMA).

I then demonstrate how to calculate the MACD and SMA indicators using TradingView's built-in functions. I implement the strategy's logic to generate buy signals when the MACD line crosses above the signal line and the price is above the SMA, while sell signals are triggered when either the MACD line crosses below the signal line or the price closes below the SMA.

I continue the tutorial by plotting the MACD indicator on the chart, including the MACD line, signal line, and histogram. I show how to customize the appearance of these elements using different colors and styles. After implementing the strategy, I demonstrate how to backtest it using historical Bitcoin price data and explain how to interpret the performance statistics.

I conclude the video with a brief optimization process, where I adjust the strategy parameters to improve its performance, achieving a significantly higher net profit compared to a buy-and-hold approach. Throughout the video, I emphasize the importance of balancing profit potential with risk management in strategy development.

Sergey Buzz