Pine Script Part 3: Indicator Creation and plot() Mastery

In this chapter we dive into the core visual tools of Pine Script that allow you to create beautiful, functional, and professional indicators. The power of Pine Script is not just calculation—it's expressing analysis visually.

Topics covered:

Creating indicators
plot(), plotshape(), plotchar(), barcolor(), bgcolor()
overlay concept
Custom moving averages
Colors, opacity, styles
User inputs
Multi-plot design
Professional visualization principles

1. Basics of Indicator Creation

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

2. The plot() Function

plot(
    series = close,
    color = color.new(color.blue, 0),
    linewidth = 2,
    title = "Price",
    style = plot.style_line
)

3. plotshape()

plotshape(longSignal, style=shape.labelup, color=color.green)
plotshape(shortSignal, style=shape.labeldown, color=color.red)

4. plotchar()

plotchar(longSignal, char="▲", location=location.belowbar)

5. barcolor() and bgcolor()

barcolor(close > open ? color.green : color.red)
bgcolor(color.new(color.yellow, 85))

6. overlay Concept

overlay=true → on price
overlay=false → separate panel

7. User Inputs

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

8. Professional Indicator Example

indicator("Advanced MA", overlay=true)
length = input.int(20)
src = input.source(close)
ma = ta.sma(src, length)

plot(ma, color=color.blue, linewidth=2)
plot(src, color=color.yellow)
barcolor(close > ma ? color.green : color.red)

9. Multiple plot() Usage

plot(ta.ema(close, 20))
plot(ta.ema(close, 50))
plot(ta.ema(close, 100))

10. Indicator in Separate Panel

indicator("Momentum", overlay=false)
mom = close - close[10]
plot(mom)

11. Open Editor

https://sancoqhub.com/go/tradingview

12. Premium Benefits

https://sancoqhub.com/go/tradingview

13. Conclusion

You now understand visual indicator creation.
Next chapter: Strategy Writing & Deep Strategy Tester Usage.