Trend Following with Moving Averages

What it is

Trend following assumes a trend that is in place is more likely to continue than to reverse. Moving averages give a lagging, smoothed view of it. They confirm a trend; they do not predict one.

What to look for

Trend state: price above a rising 50-period average, with the 20 above the 50, is an uptrend; the mirror is a downtrend. Add get_candles.structure.trend (higher highs and lows, or lower ones) as the swing-based check: both should agree.
Slope and spacing: rising and fanned out is a healthy trend; flat and intertwined is a range, where these rules do not apply.
Pullback: price returns toward the 20 to 50 area and holds.
Cross events (20 over 50, or the reverse) are late. Treat them as confirmation, never as entries.
With only 150 to 300 candles, a 200-period average is not reliable; use the 20 and 50.

How to mark it

draw_on_chart cannot draw moving averages: do not invent their values. State where price sits relative to them only if you can verify it from the candles, or if the user has them on the chart. Draw what the trend logic produces:

trendline along the higher lows (or lower highs), or a channel edge.
zone kind range for the pullback area (the band between the swing that began the pullback and the prior support), and level for the last swing low/high, which is the invalidation reference.
marker on a cross or a rejection candle at the pullback.
position when a concrete pullback setup is discussed.

Scenario logic (analysis, not advice)

Entry idea: the pullback holds in the 20 to 50 area and a candle closes back in the trend's direction.
Stop reference: beyond the last swing low (uptrend) or high (downtrend), or one and a half to two ATR.
Targets: the prior extreme, then trail behind the 20-period average or higher lows. Give the reward-to-risk of the first target.

Invalidation

A close through the 50-period average together with a lower low (uptrend) or higher high (downtrend). A flat, tangled set of averages: the trend is over and the read changes to a range.

Pitfalls

Chop is where trend rules lose. If price crosses the averages repeatedly, say the market is ranging and defer to a support/resistance read.