Skew MTF Trend

The Skew MTF Trend tool provides a comprehensive multi-timeframe analysis of market structure by displaying key moving averages and trend states across three configurable timeframes on a single chart. This indicator enables traders to identify trend alignment and potential support or resistance levels by synthesizing data from multiple horizons into a cohesive visual interface.

Usage

The Usage section describes how the script can be used to interpret market conditions and identify trading opportunities. The indicator categorizes trend states based on the relationship between price and major moving averages (specifically the 50 and 200 EMA).

• Trend Identification: The 50 EMA serves as the primary trend definition level. When the trend table displays a green triangle (▲), price is above both the 50 and 200 EMA, signifying an uptrend. A red triangle (▼) indicates price is below both levels, signifying a downtrend. A gray circle (●) represents a neutral or transitional state where price is between these two averages.
• Support and Resistance: In an uptrend, dips into the 50 EMA and the associated ribbon (21/50/100 EMAs) are viewed as potential buying opportunities. The 200 EMA serves as the final line of defense for the trend. In a downtrend, rallies toward the 50 EMA or ribbon act as potential selling opportunities.
• Timeframe Alignment: Users can observe the thickness of the lines to distinguish between timeframes (Main: thickness 2, HTF 1: thickness 3, HTF 2: thickness 4). When all three timeframes show the same trend color, it indicates a high-conviction trend.

Details

The script executes by requesting data from three distinct timeframes using request.security. It calculates a variety of Exponential Moving Averages (EMAs) and a Simple Moving Average (SMA) to build its structure:

• Main Timeframe: Features the 21, 50, 100, and 200 EMAs. A ribbon fill between the 21, 50, and 100 EMAs changes color based on stacking order (bull-stacked vs. bear-stacked).
• HTF 1: Includes the 50 and 200 EMAs for secondary trend confirmation.
• HTF 2: Includes the 21, 50, 200 EMAs and the 200 SMA for high-level structure.
• Trend Logic: Trend coloring is native to each timeframe's price action. A "Strict body check" setting is available to ensure that both the open and close are on the same side of the moving average for a color change to trigger.
• Momentum Integration: The script includes RSI and Stochastic RSI calculations to power the trend table's momentum readings.

Settings

Main Timeframe

• Show Main Averages: Toggles the visibility of the primary timeframe moving averages.
• Timeframe: Sets the period for the main moving averages (Default: 4H).
• EMA Lengths (21, 50, 100, 200): Adjusts the periods for each specific EMA calculation.

HTF 1 & HTF 2

• Show HTF Averages: Toggles the visibility for the respective higher timeframe layers.
• Timeframe: Sets the period for the higher timeframe data (Defaults: Daily/Weekly).
• EMA/SMA Lengths: Customizes the periods for the averages calculated on these timeframes.

Momentum & Display

• Show Momentum (Table): Enables the trend table in the bottom right of the chart.
• Color Candles: Applies candle coloring based on the ATR Trend (Supertrend) direction.
• Strict body check: If enabled, trend colors only change if both the open and close are above/below the moving average.
• Source: Defines the price data used for all calculations (Default: Close).

FAQ

How do I interpret the different line thicknesses? The indicator uses line width to separate timeframes visually: the thinnest lines represent your main chart timeframe, medium thickness represents HTF 1, and the thickest lines represent HTF 2.

What does the gray color on a moving average signify? A gray color indicates a neutral or transitional state where price is not clearly above or below the average, or where the "Strict body check" conditions are not fully met.

How can I access this script? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.