What this indicator does (stock-optimized)
This indicator finds high-probability pullback entries in established stock trends instead of chasing breakouts.
Concept
- Uses a 200 SMA to define the primary stock trend
- Uses a 20 EMA to detect pullbacks
- Uses RSI to avoid overbought / oversold entries
- Gives signals only in the direction of the main trend
Signal Logic
Buy (Bullish Pullback)
- Price is above 200 SMA (bull market)
- Price pulls back below the 20 EMA
- RSI is between 40–55
- Signal appears when price reclaims the 20 EMA
Sell / Short (Bearish Pullback)
- Price is below 200 SMA
- Price pulls back above the 20 EMA
- RSI is between 45–60
- Signal appears when price falls back below the 20 EMA
General Disclaimer - Trading Indicators
Risk Disclosure
Trading financial instruments carries a high level of risk and may not be suitable for all investors. The possibility exists that you could sustain a loss of some or all of your initial investment. Therefore, you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with trading and seek advice from an independent financial advisor if you have any doubts.
No Financial Advice
All indicators, scripts, strategies, and related materials provided are for educational and informational purposes only. They do not constitute and should not be construed as:
- Financial advice
- Investment advice
- Trading recommendations
- Tax, legal, or accounting advice
- An offer or solicitation to buy or sell any financial instruments
No Guarantees of Performance
- Past performance is not indicative of future results
- No indicator can predict market movements with certainty
- All trading signals may produce false, delayed, or misleading results
- Profitability is never guaranteed
- Losses can and do occur, potentially exceeding initial investment
Indicator Limitations
All technical indicators have inherent limitations:
- Based on historical data which may not predict future performance
- May experience lag, repainting, or recalculation under certain conditions
- Effectiveness varies by market, timeframe, and volatility conditions
- Require proper optimization, testing, and risk management
- Should never be used as the sole basis for trading decisions
Your Responsibility
By using any indicator, you acknowledge and agree that:
- You are solely responsible for all trading and investment decisions
- You should never risk more than you can afford to lose
- You should perform your own due diligence and research
- You should test any indicator thoroughly before using it with real money
- You should consult with a licensed financial professional before making investment decisions
- You understand the risks of leverage, margin, and derivatives if applicable
No Liability
The creator(s), distributor(s), and provider(s) of these indicators:
- Make no warranties of any kind, express or implied
- Are not liable for any losses, damages, costs, or expenses arising from the use of these indicators
- Do not guarantee the accuracy, completeness, or reliability of any indicator
- Are not responsible for technical errors, bugs, or malfunctions
- Assume no duty to update, maintain, or support these indicators
Use at Your Own Risk
You use all indicators entirely at your own risk. We strongly recommend:
- Paper trading or backtesting before live trading
- Using proper position sizing and risk management
- Never risking more than 1-2% of capital per trade
- Maintaining appropriate stop losses
- Diversifying across multiple strategies and instruments
- Keeping detailed trading records
Market Risks
Financial markets are subject to numerous risks including but not limited to:
- Market volatility and sudden price movements
- Liquidity risk and slippage
- Counterparty and credit risk
- Regulatory and political risk
- Technology and execution risk
- Black swan events and systemic shocks
No Professional Relationship
Use of these indicators does not create any advisory, fiduciary, broker-dealer, or professional relationship. The providers are not:
- Your financial advisor
- Your investment advisor
- Your broker or dealer
- Your tax or legal counsel
Regulatory Compliance
Users are solely responsible for:
- Complying with all applicable laws and regulations in their jurisdiction
- Understanding tax implications of trading activities
- Ensuring they meet all regulatory requirements for trading
- Verifying the legality of trading in their location
Third-Party Content
Some indicators may reference or integrate:
- Third-party data sources
- External APIs or services
- Community-contributed code
The providers are not responsible for the accuracy, reliability, or availability of any third-party content.
Intellectual Property
All indicators are provided under specific license terms. Unauthorized:
- Redistribution
- Modification
- Commercial use
- Reverse engineering
may be prohibited. Review individual license agreements.
Technical Disclaimer
- Indicators are provided "as is" without warranty
- No guarantee of uptime, accuracy, or functionality
- May contain bugs, errors, or incompatibilities
- Performance may vary based on platform, broker, or data feed
- Users should verify all signals independently
Educational Purpose
These indicators are designed to help users:
- Learn about technical analysis
- Understand market behavior
- Develop trading skills
- Test trading concepts
They are not designed to replace professional financial advice or prudent risk management.
Updates and Changes
- Indicators may be modified or discontinued at any time without notice
- Past versions may behave differently than current versions
- Users should stay informed of updates and changes
- No obligation exists to provide support or updates
Final Warning
TRADING IS RISKY. MOST TRADERS LOSE MONEY.
Before using any indicator or engaging in trading:
- ✅ Understand the risks completely
- ✅ Only use risk capital you can afford to lose
- ✅ Get professional financial advice
- ✅ Test thoroughly before going live
- ✅ Use proper risk management always
By using these indicators, you accept full responsibility for your trading decisions and acknowledge that you have read, understood, and agreed to this disclaimer.
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