SimpleAlgo Review –  A Charting Add-on for TradingView

SimpleAlgo is an automated charting add-on for TradingView. It offers straightforward buy and sell signals as well as automated annotation of support and resistance bands and trendlines. SimpleAlgo works on all markets that TradingView supports, including stocks, forex, and cryptocurrencies.

In our SimpleAlgo review, we’ll take a closer look at everything this automated charting software can do and help you decide if it’s right for you.

SimpleAlgo Pricing Options

SimpleAlgo costs $29.95. This is a one-time charge that includes lifetime updates and 24/7 customer support. There is no way to try out SimpleAlgo before purchasing the software and no money-back guarantee.

You can use SimpleAlgo with a free TradingView account, although this limits the time intervals and number of additional indicators you can have on your charts. Paid TradingView plans start at $14.95 per month or $126 per year.

SimpleAlgo Features

Buy and Sell Signals

SimpleAlgo offers straightforward buy and sell annotations right on your TradingView charts. The software’s development team does not provide many details about how these automated signals are determined, but they typically coincide with a change in PSAR from positive to negative (or vice versa) and a shift in MACD from positive to negative (or vice versa).

SimpleAlgo does not provide an estimate of how accurate its signals are for different asset classes or timeframes. A look at past signals across several stock charts and time intervals suggests that the signals on their own can be somewhat hit or miss. Signals in the same direction as the overall price trend tend to be more reliable, as are signals that coincide with a bounce off of a pre-existing support or resistance line.

Notably, SimpleAlgo lets you change the sensitivity of its buy and sell signals from low to medium to high. Lowering the sensitivity provides a rough measure of how reliable the algorithm considers a signal to be.

EMA Energy Cloud

Buy and sell signals also tend to follow changes in the EMA energy cloud, a set of 16 exponential moving averages calculated over slightly different timeframes. SimpleAlgo colors the EMA lines green if they are trending upward or red if they are trending downward, making it relatively easy to visualize changes in the direction of an asset’s price action.

The EMA energy cloud is most useful for spotting reversals quickly. The shortest-timeframe EMA lines tend to change color as a reversal is in progress but before it is fully obvious, and often before SimpleAlgo issues a new buy or sell signal. 

Reversal Channel

SimpleAlgo’s reversal channel is a set of bands that indicate when an asset is becoming overbought or oversold and may reverse. They can be used somewhat like Bollinger Bands – when the price of an asset climbs beyond SimpleAlgo’s channel, there’s a good chance of a reversal.

In practice, these channels are surprisingly accurate at predicting reversals. We found many examples on our charts where a reversal initiated just as an asset’s price touched the reversal channel. 

Support, Resistance, and Trendlines

SimpleAlgo can automatically annotate support, resistance, and trendlines. This feature can be helpful, but don’t expect the same degree of trendline detection that dedicated auto-charting software like TrendSpider provides.

The support and resistance lines that SimpleAlgo detects aren’t assigned confidence levels, and they tend to be relatively short-lived. The trendline analysis is aimed more at identifying large channels rather than plotting minor but potentially relevant trendlines during an uptrend or downtrend. 

How to Use SimpleAlgo

SimpleAlgo must be used in TradingView and can be applied to all assets and all timeframes. It can be used alongside any other indicators or scripts in TradingView, which is helpful for corroborating SimpleAlgo’s signals.

You can easily toggle any of SimpleAlgo’s visualizations on or off with the exception of buy and sell annotations. 

SimpleAlgo Platform Differentiators

SimpleAlgo is, as the name suggests, a very simple approach to getting automated trading signals and visualizations on technical charts in TradingView. It’s easy to use and can be combined with any popular or custom indicators available within TradingView. 

SimpleAlgo doesn’t offer a lot of customization options, and the trendline analysis leaves a lot to be desired, especially compared to more expensive software like TrendSpider. However, the EMA energy cloud and reversal channel can be surprisingly accurate at predicting reversals. 

One of the most significant differences between SimpleAlgo and other competing automated analysis software is price. SimpleAlgo costs less than $30 with no subscription, while a TrendSpider subscription starts at $39 per month. CobraAlgo, another auto-analysis add-on for TradingView, costs $53 per month.

What Type of Trader is SimpleAlgo Best For?

SimpleAlgo is best for traders who want visualization tools to predict reversals or generate buy and sell signals at a low cost. The EMA cloud and reversal channel features are especially suitable for day traders and swing traders who want to trade around trend reversals and don’t need to rely on SimpleAlgo’s signals.

It’s important to remember that SimpleAlgo requires TradingView, so it’s most suitable if you’re already a TradingView user or are considering switching to TradingView as your primary charting platform. Traders who are comfortable using TradingView’s Pine script editor could likely create their own versions of SimpleAlgo’s tools, but SimpleAlgo is inexpensive enough that the software can pay for itself in a few days of trading.