OPEN-SOURCE SCRIPT
[ElThibZ] - histogram MA Distance
This indicator utilizes multiple Moving Averages (MAs) to generate a dynamic histogram, providing traders with a clear visual representation of trend strength and potential reversal points.
Features:
Histogram Based on MAs:
You can choose to use 3 or 4 types of Moving Averages from: SMA, EMA, WMA, VWMA, RMA, HMA, ZEMA to construct the histogram.
Color-Coded Bars:
How It Works:
Histogram Construction: The indicator computes the position of the price relative to the selected MAs and translates this into a histogram where each bar's color and shade reflect the market's trend dynamics.
MA Interaction: The histogram visually represents how the current price interacts with the chosen MAs, helping traders to quickly assess whether the market is trending, consolidating, or potentially reversing.
Conclusion:
This Multi-MA Histogram Indicator is designed for traders who want a straightforward, visual approach to trend analysis. By condensing multiple trend indicators into one easily interpretable histogram, it simplifies the process of identifying market trends, making it an excellent tool for both novice and experienced traders looking to enhance their chart reading capabilities.
Features:
Histogram Based on MAs:
You can choose to use 3 or 4 types of Moving Averages from: SMA, EMA, WMA, VWMA, RMA, HMA, ZEMA to construct the histogram.
Color-Coded Bars:
- Dark Green or Dark Red Bars: Indicate when the price is either below all selected MAs or above all of them, respectively, highlighting strong bullish or bearish momentum.
- Light Green or Light Red Bars: Displayed when the price is above or below the longest MA, respectively, giving insight into the trend's current strength relative to long-term averages.
- Gray Bars: Used when none of the predefined conditions are met, suggesting a neutral or unclear market condition.
How It Works:
Histogram Construction: The indicator computes the position of the price relative to the selected MAs and translates this into a histogram where each bar's color and shade reflect the market's trend dynamics.
MA Interaction: The histogram visually represents how the current price interacts with the chosen MAs, helping traders to quickly assess whether the market is trending, consolidating, or potentially reversing.
Conclusion:
This Multi-MA Histogram Indicator is designed for traders who want a straightforward, visual approach to trend analysis. By condensing multiple trend indicators into one easily interpretable histogram, it simplifies the process of identifying market trends, making it an excellent tool for both novice and experienced traders looking to enhance their chart reading capabilities.
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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Disclaimer
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