OPEN-SOURCE SCRIPT
Updated Compound SMAs
This script calculates all the moving averages from a range of lengths (from X to Y), and plots the lowest (or highest) average for each. This gives an interesting effect where the MA line gives space to the price when rising (or falling) and tightens up when price is falling (or rising). This may be useful for getting into a position earlier and riding a trend longer. It may also be useful for decreasing whipsaw exits in trending markets.
It has a technical limitation, due to how many calculations the for loop has to do, i have included a limit input for the number of bars back to use in each MA. It is set to 3000 arbitrarily just to avoid sluggishness or potential crashes.
To use, identify the long term trend and choose "Bullish" or "Bearish". Input the source and range of MAs you would like included, and how many bars to use in the calculation. Optionally you may add a smoothing factor as well at the cost of additional lag.
It has a technical limitation, due to how many calculations the for loop has to do, i have included a limit input for the number of bars back to use in each MA. It is set to 3000 arbitrarily just to avoid sluggishness or potential crashes.
To use, identify the long term trend and choose "Bullish" or "Bearish". Input the source and range of MAs you would like included, and how many bars to use in the calculation. Optionally you may add a smoothing factor as well at the cost of additional lag.
Release Notes
Updated ChartOpen-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
Open-source script
In true TradingView spirit, the creator of this script has made it open-source, so that traders can review and verify its functionality. Kudos to the author! While you can use it for free, remember that republishing the code is subject to our House Rules.
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.