How It Trades
- Compute three weighted moving averages of the close, over 20, 50 and 200 bars.
- Buy when price and all three averages are in order at once: the close above the 20, the 20 above the 50, the 50 above the 200. The plain 20/50/200 stack asks only that the averages line up, and because the 20 lags price, that can still read bullish for a stretch after price has turned down. Putting the close at the top of the ladder means every horizon agrees on the bar the trade is opened.
- Sell when the 20 drops back below the 50 — the same exit as the rest of the stack family. Price slipping under the 20 is not an exit: it happens constantly inside a healthy trend, and selling there would cut every winner short.
Example Strategy
Pine Script
Paste it into TradingView’s Pine Editor to run these rules on any chart.
//@version=6
// Price WMA 20 50 200 Stack — sort.finance. Fills at the signal bar's close, 0.02% fee a side,
// whole account per trade, as the backtest. History and indicator warm-up
// differ from the site's, so expect close to the same trades, not identical.
strategy("Price WMA 20 50 200 Stack", overlay=true,
initial_capital=100, default_qty_type=strategy.percent_of_equity,
default_qty_value=100, commission_type=strategy.commission.percent,
commission_value=0.02, process_orders_on_close=true, pyramiding=0)
// The bar the current position opened on, and the bar the last one closed on.
var int entryBar = na
var int exitBar = -1
// ── Signals ──────────────────────────────────────────────────────────────
fast = ta.wma(close, 20)
mid = ta.wma(close, 50)
slow = ta.wma(close, 200)
aligned = close > fast and fast > mid and mid > slow
enterNow = aligned and not aligned[1]
exitNow = fast < mid
// ── Orders ───────────────────────────────────────────────────────────────
// Open on the first bar the entry holds while flat; close on the first
// later bar the exit holds; never reopen on the bar a position closed.
inTrade = strategy.position_size != 0
if inTrade and bar_index > entryBar and exitNow
strategy.close("Long")
exitBar := bar_index
else if not inTrade and bar_index > exitBar and enterNow
strategy.entry("Long", strategy.long)
entryBar := bar_index
// ── Drawing ──────────────────────────────────────────────────────────────
plot(fast, "WMA 20", color=#4d8dff)
plot(mid, "WMA 50", color=#e0a03a)
plot(slow, "WMA 200", color=#8a92a0)