OPEN-SOURCE SCRIPT
Moving Average Cloud
This moving average cloud is comprised of 7 individual moving averages; those averages are rendered as a cloud, using the minimum and maximum value of all the averages as the lower and upper boundaries. It's basically a moving average ribbon, without all the individual MA lines cluttering the view.
By rendering as a cloud, this allows other potentially useful lines to be rendered within the cloud; a middle line is rendered, along with "mid high" and "mid low" lines.
The following parameters are available:
Min MA Length - the shortest MA window represented by the cloud
Max MA Length - the largest MA window represented by the cloud
Mid-High - the location of the mid-high line within the cloud
Mid-Low - the location of the mid-low line within the cloud
MA Type - you can choose between SMA, WMA and EMA moving average types
Interpretation:
Use in confluence with other indicators.
By rendering as a cloud, this allows other potentially useful lines to be rendered within the cloud; a middle line is rendered, along with "mid high" and "mid low" lines.
The following parameters are available:
Min MA Length - the shortest MA window represented by the cloud
Max MA Length - the largest MA window represented by the cloud
Mid-High - the location of the mid-high line within the cloud
Mid-Low - the location of the mid-low line within the cloud
MA Type - you can choose between SMA, WMA and EMA moving average types
Interpretation:
- When the price is above the cloud, this indicates a bullish trend.
- When the price is around the middle, trend could be transitioning.
- When the price is below the cloud, this indicates a bearish trend.
Use in confluence with other indicators.
Open-source script
In true TradingView spirit, the author of this script has published it open-source, so traders can understand and verify it. Cheers to the author! You may use it for free, but reuse of this code in publication is governed by House rules. You can favorite it to use it on a chart.
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