Moving Average Consecutive Up/Down Strategy (by ChartArt)

The Moving Average Consecutive Up/Down Strategy tool identifies trend momentum by executing trades based on a user-defined number of consecutive upward or downward movements in a chosen moving average.

Usage

The Moving Average Consecutive Up/Down Strategy is used to capture momentum-based trends. Users can define the sensitivity of the strategy by adjusting the number of consecutive bars the moving average must move in a specific direction before a signal is triggered.

• Long Entry: Triggered when the selected moving average increases for a specified number of consecutive bars.
• Short Entry: Triggered when the selected moving average decreases for a specified number of consecutive bars.

The script provides several visual aids to assist with trend interpretation:

• Bar Coloring: Changes the color of price bars based on the immediate direction of the moving average.
• Background Highlighting: Highlights the chart background when the consecutive trend requirement is met.
• Trend Line: An experimental plot that marks the price points where the moving average trend shifts.

Details

This strategy is an adaptation of the "Consecutive Up/Down Strategy" by TradingView, modified to utilize moving average values instead of raw price action. By applying the consecutive logic to a moving average, the strategy filters out minor price fluctuations and focuses on sustained directional shifts.

The script calculates the relationship between the current moving average value and the previous value. If the current value is higher, it counts as an "up" bar; if lower, it counts as a "down" bar. Once the counter reaches the user-defined threshold, the strategy executes a trade. The implementation supports four types of moving averages: Simple Moving Average (SMA), Exponential Moving Average (EMA), Weighted Moving Average (WMA), and Linear Regression.

Settings

Visuals

• Enable Bar Color?: Toggles the coloring of price candles based on the current moving average direction.
• Enable Background Color?: Toggles the background highlight when the consecutive bar condition is met.
• Enable Moving Average Trend Line?: Toggles the display of an experimental line indicating moving average changes.

Strategy Configuration

• Consecutive Trend in Bars: Sets the required number of consecutive moving average increases or decreases needed to trigger an entry.
• Moving Average Length: Determines the lookback period for the moving average calculation. Setting this to 1 effectively turns off the smoothing.
• Moving Average Type: Selects the calculation method (1 = SMA, 2 = EMA, 3 = WMA, 4 = Linear Regression).
• Price Source: Determines the price data used for the moving average calculation (e.g., Close, Open, High, Low).

FAQ

What moving average types are supported? The strategy supports four different types: Simple Moving Average (SMA), Exponential Moving Average (EMA), Weighted Moving Average (WMA), and Linear Regression.

How does the "Consecutive Trend in Bars" setting work? This setting determines how many bars in a row the moving average must move in the same direction before the strategy enters a trade. A higher value requires a more established trend, while a lower value is more sensitive to changes.

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