Skill and Precision Indicator - Complete Trading Guide

Indicator Overview

The Skill and Precision indicator is a sophisticated moving average crossover system designed to identify high-probability trend reversals with exceptional accuracy. This professional-grade tool combines:

Dual moving average crossover logic

Dynamic price range filtering

Visual arrow signals

Optional alert functionality

Core Trading Logic

How It Works:

Dual MA Crossover System:

Uses a faster MA (default: LWMA period 1) and slower MA (default: LWMA period 5)

Generates signals when the fast MA crosses the slow MA with confirmation

Smart Signal Validation:

Requires confirmation from both previous and subsequent candles

Filters false signals using average true range (ATR) calculations

Visual Presentation:

Lime green up arrows for bullish crossovers

Red down arrows for bearish crossovers

Arrows placed at strategic levels relative to price extremes

Optimal Settings Configuration

ParameterDescriptionRecommended Values

FasterModeFast MA type3 (LWMA recommended)

FasterMAFast MA period1-3 for scalping, 3-5 for swing

SlowerModeSlow MA type3 (LWMA recommended)

SlowerMASlow MA period5-9 for day trading, 13-21 for swing

enableAlertAlert toggleTrue for active trading

Professional Trading Strategy

Best Timeframe Applications:

M1-M15: Ultra-short-term scalping (use 1/3 MA settings)

M30-H1: Day trading (use 3/5 or 3/8 settings)

H4-D1: Swing trading (use 5/13 or 8/21 settings)

Entry Protocol:

Long Entries:

When lime arrow appears below price

Confirm with price both MAs

Stop loss below recent swing low

Initial target at 1:2 risk-reward ratio

Short Entries:

When red arrow appears above price

Confirm with price both MAs

Stop loss above recent swing high

Initial target at 1:2 risk-reward ratio

Advanced Confirmation Techniques:

Wait for candle close beyond MA crossover point

Combine with RSI (40/60 levels for stronger confirmation)

Volume spike validation for breakout reliability

Slogan

"Master the Markets with Surgical Precision - Where Technical Skill Meets Trading Excellence!"

Pro Trading Tips

Session Optimization:

Works exceptionally well during London open (3-5AM EST)

Excellent for New York session breakouts (8-11AM EST)

Risk Management:

Use 0.5-1% risk per trade

Trail stops using the slower MA

Scale out positions at 1R and 2R targets

Signal Enhancement:

Add 200 EMA as trend filter (only trade arrows in direction of 200 EMA)

Use with Bollinger Bands® for volatility context

Combine with MACD histogram for momentum confirmation

Indicator Strengths

✓ Ultra-responsive to price changes (LWMA-based)

✓ Triple-confirmation crossover logic reduces false signals

✓ Clean visual presentation avoids chart clutter

✓ Customizable for all trading styles

Performance Tips

• For forex: Use on GBP/USD and EUR/USD during London session

• For stocks: Excellent on liquid NASDAQ-100 components

• For crypto: Works well on BTC/USD 15m-4h charts

Recommended Pairings:

Volume Weighted MA (VWMA) for additional confirmation

Stochastic oscillator for overbought/oversold filtering

Fibonacci retracement levels for profit targets

Would you like me to develop any of these enhancements?

Multi-timeframe dashboard version

Integrated stop-loss/take-profit calculator

Automated trade execution script

Advanced divergence detection system