Understanding the If/Else Statement in Pine Script

This article will explore how to utilize the if/else statement in Pine Script through a practical example.

Syntax of the If/Else Statement

The if/else statement in Pine Script follows a straightforward syntax that allows scripts to execute different code blocks based on a condition. Here’s a basic structure:

variable = if condition
    value_if_true
else
    value_if_false

This syntax evaluates a condition. If the condition is true, the script assigns the value_if_true to the variable. If the condition is false, it assigns the value_if_false to the variable instead.

Practical Example: Dynamic Plot Color Based on Moving Average

Now, let’s delve into a practical example that demonstrates the use of the if/else statement in Pine Script. This example involves dynamically changing the plot color of a Simple Moving Average (SMA) based on whether the current close price is above or below the SMA.

The Script

//@version=5
indicator(title="Dynamic Plot Color Example", overlay=true)

// Calculate simple moving average
averagePrice = ta.sma(close, 20)

// Determine plot color
colorDecision = if close > averagePrice
    color.green
else
    color.red

// Plot SMA with dynamic color
plot(averagePrice, color=colorDecision,
     style=plot.style_circles, linewidth=3)

Walkthrough of the Script

1. Version Declaration and Indicator Setup: The script begins with //@version=5 to specify it uses version 5 of Pine Script. indicator(title="Dynamic Plot Color Example", overlay=true) declares a new indicator with a specified title, which overlays the chart.
2. Calculating the Simple Moving Average: averagePrice = ta.sma(close, 20) calculates the 20-period simple moving average (SMA) of the close prices. We’ve renamed smaValue to averagePrice for uniqueness.
3. Determining the Plot Color: The script uses an if/else statement to assign the plot color to colorDecision. If the current close price is greater than the SMA (averagePrice), colorDecision becomes green; otherwise, it becomes red.
4. Plotting the SMA: Finally, plot(averagePrice, color=colorDecision, style=plot.style_circles, linewidth=3) plots the SMA on the chart with circles. The color of the plot is dynamically determined by the if/else condition evaluated earlier.

Key Features and Takeaways

• Functionality and Syntax: The if/else statement allows Pine Script to execute conditional logic, making your indicators and strategies more dynamic and adaptable to different market conditions.
• Application: This example demonstrates how to use the if/else statement to change plot colors based on the relationship between the price and a moving average. Such techniques can be applied to various trading strategies and indicators for visual cues or decision-making.
• Modifiability: The simplicity of the if/else syntax in Pine Script makes it easy to modify conditions and outcomes, allowing for extensive customization of your trading tools.