Course Content
How To Create TA Indicators on TradingView
Without the right trading tools, you can’t conduct effective technical analysis. A strong trading strategy will help you avoid common mistakes, improve your risk management, and increase your ability to identify and take advantage of opportunities. For many, TradingView is the go-to charting platform. Offering a hub of technical analysis tools, the powerful HTML5 web application is used by millions to track movements in the Forex, cryptocurrency, and traditional stock markets. TradingView has many powerful features: it allows us to track assets across numerous trading platforms and to publish trading ideas within its social network. In this article, we’ll focus on its customizability. We’ll be using Pine Script, TradingView’s own programming language, which grants us granular control over our chart layouts. Let’s get started!
0/8
What is Pine Script?
Setting up
The Pine Editor
Plotting moving averages (MA)
Plotting the Relative Strength Index (RSI) indicator
Backtesting
Tying it together
Closing thoughts
How To Create TA Indicators on TradingView
About Lesson

Time to write our own script by using some of the concepts we’ve seen so far. We’re going to combine EMA and RSI and use their values to color candlesticks, yielding insights that we can easily visualize. 

This shouldn’t be construed as financial advice – there’s no objectively correct way to use this indicator. As with all others, it should be used with other tools to develop your own strategy.

Now let’s work on our new script. Remove all your indicators from the chart, and hide the Bitcoin/BUSD chart, too, so that we have a clean canvas to work on.

Let’s start by defining our study. Feel free to name it whatever you want, just make sure to set overlay=true.
study(title="Binance Academy Script", overlay=true)
Remember our EMA formula from earlier. We need to provide the multiplier with the length of the EMA. Let’s make it an input that requires an integer (so, no decimal places). We’ll also set a minimum that it can be (minval), and a default value (defval).
study(title="Binance Academy Script", overlay=true)
emaLength = input(title="EMA Length", type=input.integer, defval=25, minval=0)

Using this new variable, we can calculate the EMA value for each candle in our chart:

study(title="Binance Academy Script", overlay=true)
emaLength = input(title="EMA Length", type=input.integer, defval=25, minval=0)
emaVal = ema(close, emaLength)

Great. Onto the RSI. We’ll give it a length in a similar way:

study(title="Binance Academy Script", overlay=true)
emaLength = input(title="EMA Length", type=input.integer, defval=25, minval=0)
emaVal = ema(close, emaLength)
rsiLength = input(title="RSI Length", type=input.integer, defval=25, minval=0)

And now, we can calculate it:

study(title="Binance Academy Script", overlay=true)
emaLength = input(title="EMA Length", type=input.integer, defval=25, minval=0)
emaVal = ema(close, emaLength)
rsiLength = input(title="RSI Length", type=input.integer, defval=25, minval=0)
rsiVal = rsi(close, rsiLength)

At this stage, let’s put together the logic that colors the candlesticks depending on the EMA and RSI values. Let’s take a situation where (a) the close price of the candle exceeds the EMA and (b) where the RSI is above 50.

Why? Well, you might decide that these indicators can be used in conjunction to tell you when to long or short Bitcoin. For instance, you might think that satisfying both of these conditions means that it’s a good time to enter a long position. Or conversely, you might use it to inform you when not to short, even if other indicators say otherwise.

So, our next line will look like this:

study(title="Binance Academy Script", overlay=true)
emaLength = input(title="EMA Length", type=input.integer, defval=25, minval=0)
emaVal = ema(close, emaLength)
rsiLength = input(title="RSI Length", type=input.integer, defval=25, minval=0)
rsiVal = rsi(close, rsiLength)
colors = close > emaVal and rsiVal > 50 ? color.green : color.red
If we translate this into plain English, we’re merely saying that if the EMA value exceeds the close price and the RSI score exceeds 50, we’ll color the candle green. Otherwise, we’ll color it red. 

Next, plot the EMA:

study(title="Binance Academy Script", overlay=true)
emaLength = input(title="EMA Length", type=input.integer, defval=25, minval=0)
emaVal = ema(close, emaLength)
rsiLength = input(title="RSI Length", type=input.integer, defval=25, minval=0)
rsiVal = rsi(close, rsiLength)
colors = close > emaVal and rsiVal > 50 ? color.green : color.red
plot(emaVal, "EMA")
Lastly, plot the candles, making sure to include the color parameter:
study(title="Binance Academy Script", overlay=true)
emaLength = input(title="EMA Length", type=input.integer, defval=25, minval=0)
emaVal = ema(close, emaLength)
rsiLength = input(title="RSI Length", type=input.integer, defval=25, minval=0)
rsiVal = rsi(close, rsiLength)
colors = close > emaVal and rsiVal > 50 ? color.green : color.red
plot(emaVal, "EMA")
plotcandle(open, high, low, close, color=colors)

And that’s the script! Add it to the chart to see it in action.

A BTC/BUSD chart with the EMA/RSI indicator.

Previous
Next