Technical analysis by HCN-News12 about Symbol BTC on 6/16/2025

In the digital age, trading is gradually shifting from manual analysis to automated solutions. A key player in this process is Pine Script — a programming language developed for the TradingView platform, enabling users to create custom indicators, strategies, and automated signals. Its simplicity and powerful capabilities have made it especially popular among retail traders.What is Pine Script?Pine Script is a language developed by the TradingView team specifically for financial market analysis. Unlike general-purpose languages like Python or C++, Pine Script is designed for tasks related to technical analysis and trading automation.It is used for:Creating custom indicators;Writing trading strategies;Visualizing data on charts;Setting up trading alerts (notifications).Why Automate Trading?Automated trading eliminates the human factor, which is crucial in volatile markets. Key advantages include:Speed of reaction — the algorithm reacts instantly to signals.Discipline — automated strategies do not succumb to emotions.Scalability — one strategy can be applied to dozens of instruments.Historical analysis — the ability to test ideas on past data (backtesting).Structure of a Pine ScriptEvery script starts with a version declaration and the type of tool being created:pinescriptCopyEdit//version=5indicator("Sample Indicator", overlay=true)version=5 — Pine Script version.indicator(...) — indicates that the script is an indicator.overlay=true — places graphics over the price chart.For strategies, the strategy keyword is used:pinescriptCopyEditstrategy("My Strategy", overlay=true)Example of a Simple Automated StrategyLet’s build a script that generates buy and sell signals based on the crossover of two moving averages:pinescriptCopyEdit//version=5strategy("MA Strategy", overlay=true)fastMA = ta.sma(close, 9)slowMA = ta.sma(close, 21)longCondition = ta.crossover(fastMA, slowMA)shortCondition = ta.crossunder(fastMA, slowMA)if longCondition strategy.entry("Buy", strategy.long)if shortCondition strategy.entry("Sell", strategy.short)plot(fastMA, color=color.green)plot(slowMA, color=color.red)This code:Opens a long position when the fast MA crosses above the slow MA.Opens a short position when the fast MA crosses below the slow MA.Strategy BacktestingTradingView automatically runs a backtest on historical data. In the Strategy Tester tab, users get:total number of trades;average profit;win rate;maximum drawdown;risk/reward ratio.This is a vital tool to evaluate the effectiveness of a strategy before deploying it in live trading.Adding Stop Loss and Take ProfitTo manage risk, strategies can include loss and profit limits:pinescriptCopyEditstrategy.entry("Buy", strategy.long)strategy.exit("Exit Buy", from_entry="Buy", stop=100, limit=200)stop=100 — stop loss at 100 points.limit=200 — take profit at 200 points.This enhances both automation and risk control in the trading process.Setting Up AlertsWhile Pine Script cannot place real trades by itself, it can generate alert signals, which can be linked to external systems or brokers.pinescriptCopyEditalertcondition(longCondition, title="Buy Signal", message="Buy signal")alertcondition(shortCondition, title="Sell Signal", message="Sell signal")After adding these conditions to the chart, users can set up alerts that arrive via email, mobile notifications, or webhooks—useful for integration with bots or APIs.Automated Trading via APIFor full automation (from signal to trade execution), Pine Script is often used in conjunction with other technologies:Webhook — TradingView sends an HTTP request when an alert triggers.Server or bot — receives and processes the request, then sends an order to the broker.Broker’s API — executes the order (open, close, modify positions).Examples of brokers with API access: Binance, Bybit, Interactive Brokers, Alpaca, MetaTrader (via third-party bridges).Tips for Writing Trading StrategiesStart simple. Use just 1–2 indicators.Avoid overfitting. Don’t tailor your strategy too closely to past data.Test on different timeframes. Ensure strategy stability.Account for fees and slippage. Especially important on lower timeframes.Add filters. For example, trend direction, volume, or volatility conditions.Pine Script LimitationsWhile powerful and beginner-friendly, Pine Script has some limitations:No tick-by-tick data access. Scripts execute on bar close.Resource limits. Limits on script length and processing power.No direct trade execution. Only possible via external integration or supported brokers.ConclusionPine Script is an excellent tool for traders who want to automate their trading ideas. It allows you to create, test, and visualize strategies—even with minimal programming knowledge. While it’s not a full-fledged programming language, its capabilities are more than sufficient for most retail trading needs. With Pine Script, traders can improve efficiency, consistency, and reduce the emotional impact of trading decisions.