a traders welcome back to another pine script tutorial today's tutorial is going to focus on the security function in order to use higher time frame data so the example I'm going to use today is implementing a higher time frame EMA so what we're going to do is we're going to access the 50 day EMA on these intraday time frames so on this four hour chart when we're finished it will be plotting the 50 day EMA as opposed to the 50 standard EMA so let's get straight into this one it's going to be called less than 8 today because that's what we're up to the first thing we need to do is set the overlaid to true so that this will draw on to our charts the next thing we need to do is get some user input so the first input I'm going to get is the time frame what time frame do we want a reference so this is going to be called EMA time frame it's going to be a type of input dot resolution we're working with resolution here which is which means time time frame and the default value is going to be D for daily chart you could also set this to 1440 which is 1440 minutes 1440 minutes is one day otherwise just use D for short the next input is going to be the EMA length so MA length and a type of integer integer and the default value is going to be 50 typos everywhere today all right the next input is going to be whether or not to color this EMA now this will make more sense later but what basically what this is going to do is if price action is above the EMA the EMA will be colored green and if price action is below the EMA to be colored red this is just something I like to do with my indicators the ones that use emas so red obviously means I'm looking for short trades and green means I'm looking for long trades and so I'll show you how to do that in this tutorial today as well so this will be called color EMA and it'll be a type of input bool boolean and the default value is gonna be true last but not least is going to be our smoothing function now I'll explain this one later when we actually have the EMA plotting to the chart but this is going to also be a boolean input so input title equals smooth type whoops type is input bull and this one is going to be set to true as well I'll save that and we'll move on to the next bit of code which is going to be get actually getting the EMA value itself so I'll call this calculate EMA and we'll begin here by establishing an EI EMA variable so this EMA variable is going to be set to the inbuilt EMA function if you hover your mouse over this it'll tell you what you need to input in order to get a return value and this EMA function takes a source and a length source is high low close that sort of thing length is obviously the period length of the EMA so we want to calculate this EMA based on the closing price and it's going to be a length of Len of our variable we created here so a default of 50 the next thing we need to do is get the higher time frame EMA so we're going to basically plug this liner code into the security function in order to use this to calculate this EMA value based on the daily closing price or whatever time frame you set in your resolution input so we're going to get to email use here and this is gonna be a little bit complicated to explain but I'll do my best basically when you're calculating a higher time something like a higher time frame EMA you've got to remember that if I go down to a one-hour chart for example there's 24 one-hour bars in a day 24 one-hour bars make up one daily bar and so there's gaps between the star of this 24-hour period and the beginning of the next four-hour period there's gonna be gaps in price data on that higher time frame and so what we're going to do in order to compensate that is we're gonna have to EMI values one is going to compensate for that value and the other is not so basically one is going to be a smooth higher time frame EMA value and one is going to be a stepped higher time frame EMA value so this will make a lot more sense when this is drawing to the chart so let's just write the code first and then I'll come back to explaining what's happening so the first EMA value are going to get is the smooth EMA value and we're going to assign this one this variable to the security function and now I'll explain what goes into this one if you hover your mouse over the function name it will tell you what inputs it takes and it outputs whatever it needs to floating-point numbers like price price data integers boolean's color which I believe is candlestick color today we're going to be working with the float because we're going to be calculating an EMA value which is a float because it has decimal point numbers just like price action does because it is a an average of price action values the first input this thing takes this function takes is what's symbol do you want to calculate this data on so you can actually use this to reference other symbols so you could reference and we're on Ozzy CAD here Australian dollar versus Canadian dollar but you could reference the euro dollar or or a stock commodity whatever you feel like so I'm not going to go into detail about that in this tutorial this is just introducing you to the security function but in future tutorials I'll show you how to reference other markets today is market we're just going to reference the current symbol so we need to write in here sim info which is short for symbol info press control space and you get a list of of variables you can you can grab from this basically this this collection of instrument data and so out of this list we want ticket ID and this will give us the Australian cat AUD C ad and I believe it will also get it from the same brokerage so so whatever broker you're on it will get the price action data for the symbol you're on from the same broker which is important obviously because different brokers have different price data and so you want this to be consistent with the symbol you're referencing on your charts so trading view takes care of that all for you just by this little happy little line of code here to reference Bob Ross but the next variable we need to input here is the resolution what time frame are we referencing and we can just reference our time frame important from up here so just type in res sorry I could have taken lots of breaks between writing this out because my neighbors are redoing their lawn and there's someone out there shoveling a whole lot of gravel I don't envy them today that's a harder job than writing code that's for damn sure so the next input variable we need to get we need to plug in to this security function is it's called expression here you can see expression is a third input basically this is any expression any line of code and so we're going to be plugging in this here into into this expression slot or whatever and what this is saying is on the current symbol ticker ID or Z CAD on the current time frame or that are on the reference time frame the daily time frame it's saying tradingview please get us the EMA variable from this information so this will be the daily clothes on the daily chart and we'll be calculating a 50 period EMA with that information but we're not quite done yet we also need to plug in the gaps variable and the look-ahead variable and I'll explain what those do next so the first one is gaps and we're gonna write in here bar merge dot and press control space and that will show us the available variables for bar merch basically if you put bar merge caps on what that will do is remember I said that there's 24 one-hour bars in a day well this will merge the gaps between the start of the day and the start of the next day and basically what that will give us is a an average of the average we're going into EMA inception here and we're calculating a average of the EMA the exponential moving average and merging the gaps between price action so again that'll make more sense when you can see it on the chart so for this one we're just going to write gaps on so we're turning bar merge on emerging the gaps of any price action gaps on the higher time frame we're turning that feature on the next input is an interesting one as well this is the look ahead so if I type bar merge dot control space we have look ahead on or look ahead off basically what look ahead is is that in historical data when you're referencing a higher time frame pine Script obviously has access to the days closing price the current days closing price so right now the day daily chart hasn't closed on this time frame so if you were to turn this to look ahead on it would be referencing the current days closing price and that's how you would run into what's called repainting issues I'll get into that in another lesson because it's a little bit advanced for this stage of this this course but basically in layman's terms what that means is that if you set this to look ahead on throughout historical price action the script will be able to look into the future to see what the day's closing price was before the day would have closed in live action so first of all there's all sorts of reasons why you would want the script to be able to cheat and look ahead but I'm not gonna go into them today I'm just gonna say that for the most part for most scripts that you create it's probably safest to just turn look-ahead off so this script is going to merge any price action gaps between any missing price action gaps and it's going to not look ahead and basically when you turn this off what that means is that instead of on historical data instead of referencing the days closing price and cheating seeing looking ahead to see what the day's closing price was it will simply reference the previous day's closing price instead which in this case for the purposes we're using this higher time for an EMA for is exactly what we want so we'll leave that off and the next step in this tutorial lesson is to create the EMA steped version and then I'll will plot these to the chart and it'll make a lot more sense what these to do so again we're going to reference the security function we're going to do all the same here we're going to reference the same symbol that we're currently on the same higher time frame setting the same EMA expression the only difference on this line of code is that we're going to set Bar merge gaps off and the BOM merge look-ahead is also going to be off so literally the only difference between these two lines of code is that this one has gaps off and now we can plot these two variables to our chart so let's do that here now we don't want to draw both of these EMAS at the same time which is why I have this smooth setting here so whether this is turned on or off we'll determine which one of these EMA is we draw it to the chart so this is going to be a little bit of a messy line of code but I'll explain it as we go first thing we're going to use is what's called a conditional operator if you're not sure what this is just go back and go through my previous lessons where I explain in detail how this works but this is like an if if or else statement so we're going to say if smoothing is on if this smooth bullying is set to true in the settings menu then we want to draw the EMA smooth otherwise if this is set to false we want to draw the EMA step value then comma for that the next function setting for this this plot function is going to be the color what color are we going to draw this EMA at and that's where this color variable boolean comes into play or you want to say if we're coloring this EMA then we want it to be green if the current closing price on this time frame is above our higher time frame I'm gonna use EMA step for this and I'm not gonna explain why but that'll make more sense if you if you go over this lesson a couple times and you and you really think about what these two lines of code do but anyway here we're going to stack two conditional operators on top of each other so we're gonna say if the color variable is turned on this boolean is set to true and the if the closing price is above the higher time frame EMA then we want to set the color to green otherwise if color is set to true and the closing price is not above the EMA higher time frame EMA then we want to set the color to red and then we'll draw another semicolon here otherwise we're just going to paint it black as the rolling stones would say I'll just go over this one more time because the nodes would be confusing to look at but what it's saying is if the color variable is set to true if the user has set this boolean to true this check box is ticked and the closing price is currently above the higher time frame EMA then we want to set the EMA color to green otherwise if it's the closing prices below the EMA or equal to it then we want to set it to red and if this color variable input variable is not set to true meaning the check box is not ticked then we're just going to paint it a solid black color and that's it for this section now we're just going to set the line width to two so that it's just a little bit thicker I feel that that works better on EMAS especially a higher time frame EMA and we're going to title this plot function so that our users can go into the settings menu and change these colors if they want to so I'm going to say EMA in brackets hiya time frame and that's it for this script basically we can hit save and add to chart hopefully there's no errors doesn't look like it add to chart and there we have it it's now plotting to the chart but because we're so zoomed in on this one hour time frame we can't see it so zoom out a little bit let's go up to the 4-hour chart and here we have the higher time frame EMA 50-day EMA being drawn to our 4-hour chart but we do have smoothing turned on so if we come up to here and we turn smooth off now we have our stepped 50-day EMA and so I'll just quickly explain this stepped EMA again now that we can see it on our chart and that'll be the end of this lesson so we go down the one-hour chart zoom out a bit if I count the amount of bars between each step you'll see that it adds up to 24 so during this whole day of price action the EMA was one solid value and this was the previous day's 50 EMA value based on the closing price and this is exactly what we want if you're going to use this information to trade off this is what you want on your chart and now this script isn't quite perfect if I am if you look up here you can see that it's it is actually repainting it's still repainting even though we set look ahead to off I'm not going to go over how to fix that in this in this lesson because it's it's quite a detailed process and the lessons already long enough but this is the gist of what you would need to do in order to achieve working with higher time frame data using the security function in future lessons we'll do other things like drawing the higher time frame high or low but that sort of thing but this is a great introduction to the security function and what all the variables do and so yeah this if we turn this to smooth if we turn the smooth function on you can see that it's merging the gaps and so we're not getting that stepped effect but but this is an inaccurate 50-day EMA reading looks a lot better looks cleaner on your chart and it could be useful for things like just performing general technical analysis on your charts but if you wanted to use these levels to trade off it would be much better to have this depth version on so that during this day you are referencing the previous previous days 50 EMA value instead of the current days 50 EMA value which really we won't know until the end of the trading session and that and the current daily chart closes so yeah that's it for this lesson I hope that made sense if not leave a question in the comment section and I'll get back to you as soon as I can if you found this lesson helpful please subscribe to the channel that there's a lot of motivation to continue making these videos and I'm glad to be able to help you guys learn this new skill and just before I leave I just wanted to let you guys know that there is a lot that goes into creating complex and practical useful Pyne script scripts and indicators and so I'm considering creating a very in-depth advanced plan script course for you guys going into detail maybe going over how I create my own indicators my own complex indicators such as my ultimate pull back indicator which I actually used to trade the live markets forex markets and this is painting pull back signals to the charts so you can see it's it sends me an alert telling me when to go long or short tells me my stop-loss my target placement and you can see it's had a couple of winning trades here I'm considering teaching you guys exactly how I made this sort of indicator the catch is this information is quite valuable it took me a long time many many many hours of work to get something like this working and I don't really feel comfortable giving away all of my secrets for free so I'm considering creating a premium pine script course where I'll go into much more detail about how to practically apply all of this information and I'll make it affordable when it is finished and by the end of it you will be able to create your own strategy scripts your own indicators and tools to aid in your own trading and so over the next few maybe months I'm going to be working on that and building that and making that as great as I possibly can and I'll let you guys know when it's ready and for those of you who really want to take this to the next level that'll be a great resource for you guys to really enhance your edge and in that course I may even include a mentorship option where you can get one-on-one access with me and ask me questions and I'll help you to create your own scripts because right now I'm getting a lot of questions from traders and coders and I just I really don't have the time to help everyone and so I'd love to offer a service where I can help you guys but obviously with the amount of time I spend on my own trading and content creation I just don't have the time to do that for everyone so I'll have to find a way to prioritize that and maybe the core students can get that priority and so if you're interested in that I'll leave a link in the video description to sign up to my PI inscript mailing list and anyone who signs up before the course is released I'll send out an email to you when it is released and I'll give you a significant discount on the opening price for supporting me and for pursuing success and being proactive about your trading because I respect that and I will reward that where I can so we'll speak to you guys in the next lesson good luck with your trading best of luck with your coding keep at it I know this stuff can be confusing and it takes time to learn but it's extremely extremely valuable information to master and once you do you will be able to take your trading to the next level completely and possibly even automate your strategies that'll be another thing I'll cover in the paid course how to use third-party api's to automate strategy scripts so take it easy everybody I've enjoyed this time with you I hope you did too and I'll see you in the next lesson good bye [Music]
No comments:
Post a Comment