Pine Script (TradingView) - A Step-by-step Guide

Introduction

Pine Script is TradingView's proprietary programming language designed for creating custom technical indicators and trading strategies. Updated for Pine Script V5, this guide covers everything from basic syntax to advanced backtesting techniques.

Core Concepts

What is Pine Script?

Pine Script is a lightweight language optimized for:

• Backtesting trading strategies
• Developing custom indicators
• Seamless integration with TradingView's charting tools

Key features:
👉 Built-in financial data

• Access to global markets (stocks, forex, crypto) without external data feeds
• Simplified syntax compared to Python or JavaScript

Advantages of Pine Script

1. Rapid prototyping – Test ideas with minimal code
2. Pre-loaded technical indicators (e.g., SMA, RSI, Bollinger Bands)
3. Active community – 100,000+ public scripts in TradingView's library

Limitations

• Restricted to TradingView's ecosystem
• No machine learning/third-party library support
• Limited alternative data access (e.g., economic datasets)

Getting Started

Pine Editor Basics

1. Navigate to TradingView and open the charting platform
2. Launch Pine Editor (bottom toolbar)

Default script structure:

//@version=5
indicator("My Script", overlay=true)
plot(close)

• //@version=5 declares the Pine Script version
• indicator() defines the study type and name
• plot(close) displays closing prices

Key Techniques

1. Multi-Asset Data Retrieval

Fetch Apple's price without switching charts:

apple_price = request.security("AAPL", "D", close)
plot(apple_price)

2. Indicator Calculation

20-period SMA example:

apple_sma = ta.sma(apple_price, 20)
plot(apple_sma, color=color.blue)

3. Strategy Backtesting

MA Crossover strategy with RSI filter:

strategy("MA Crossover", overlay=true)

longCondition = ta.crossover(ta.sma(close,10), ta.sma(close,30))
if (longCondition and ta.rsi(close,14) > 50)
    strategy.entry("Long", strategy.long)

shortCondition = ta.crossunder(ta.sma(close,10), ta.sma(close,30)) 
if (shortCondition and ta.rsi(close,14) < 50)
    strategy.entry("Short", strategy.short)

4. Risk Management

ATR-based stop loss/take profit:

atr = ta.atr(14)
stopLoss = low - atr*2
takeProfit = high + atr*2
strategy.exit("Exit", stop=stopLoss, limit=takeProfit)

5. Multi-Timeframe Analysis

Plot 5-minute Bollinger Bands on 1-minute chart:

[middle, upper, lower] = ta.bb(close, 20, 2)
htf_bands = request.security(syminfo.tickerid, "5", [middle, upper, lower])
plot(htf_bands[1]) // Upper band

Advanced Features

User Inputs

Customizable parameters:

length = input(20, "MA Length")
source = input(close, "Price Source")
plot(ta.sma(source, length))

Annotations

Visual trading signals:

plotshape(ta.crossover(close, ta.sma(close,50)), 
         style=shape.triangleup, 
         color=color.green,
         location=location.belowbar)

FAQ

How do I share my Pine Script indicators?

Publish to TradingView's public library via Pine Editor's "Publish" button.

Can Pine Script execute live trades?

No – it's for analysis/backtesting only. For automated trading, consider TradingView's alert system with broker APIs.

What's the difference between strategy() and indicator()?

• strategy() enables backtesting with simulated trades
• indicator() creates visual studies without trade logic

Conclusion

Pine Script democratizes algorithmic trading by:

1. Eliminating data collection hurdles
2. Providing instant visualization of strategies
3. Enabling rapid iteration with simple syntax

For next steps:
👉 Explore TradingView's script library

• Study community-built indicators
• Modify existing scripts to learn patterns