Trend Following Moron TFM 10% System

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Trend Following Moron TFM 10% System

The TFM 10% Market Timing System

The Trend Following Moron TFM 10% System is a powerful trading tool designed using Pine Script™, following the principles outlined by Dave S. Landry. This script helps traders identify optimal entry and exit points based on moving averages and market trends.

What the Script Does:
Visual representation of trend strength.

As long as it is trending in green band, trend is very strong and price is contained within 5% of the high.

As price drops to yellow band, strength is weakening and caution is advised. Price is between 5% to 10% away from52 week high.

As price drops in red band, it is to be avoided as trend is rolling over. Price is more than 10% way from 52 week high.

Moving Averages Calculation:

Users can choose between Simple Moving Average (SMA) and Exponential Moving Average (EMA) for daily, weekly, and monthly periods. The script calculates the moving averages to provide trend direction.

Trend Color Coding:

Moving averages are displayed in different colors based on market conditions: green indicates an uptrend, red for a downtrend, and gray for neutral conditions.

Highs Calculation:

The script calculates the 52-week and 12-month closing highs, which are crucial for identifying potential breakout points.

Level Definition:

Traders can set levels based on either Average True Range (ATR) or percentage changes from these highs, allowing for flexible risk management strategies.

Buy and Sell Conditions:

The script defines specific buy conditions: when the price is within 10% of the highest close and trading above the moving averages, and sell conditions: when the price falls below these thresholds.

Visual Indicators:

Buy and sell signals are visually represented on the chart with arrows, making it easy for traders to see potential trading opportunities at a glance.

Performance Labels:

The script includes performance labels that track the number of bars above or below the moving averages and the percentage change from the moving average, providing users with key metrics to evaluate their trades.

Interactive Table:

A table summarizing the buy and sell rules is displayed on the chart, ensuring that traders have quick access to the system’s trading logic.

Benefits of Using the TFM 10% System:

Streamlined Decision Making:

The script simplifies the trading process by clearly outlining buy and sell signals, making it accessible even for novice traders.

Customizable Parameters:

Users can tailor the script to their preferences by adjusting moving average types and lengths, ATR levels, and percentage thresholds. Bands are interchange able for ATR and Percent below 52 week high for volatility looks. But buy and sell are fixed in 10% threshold.

Risk Management:

By utilizing ATR and percentage levels, traders can effectively manage their risk, making the trading process more systematic.

Comprehensive Market Analysis:

The combination of multiple time frames (daily, weekly, monthly) allows for a well-rounded analysis of market trends, enhancing trading accuracy.