Moving Average Cross Toolkit

The Moving Average Cross Toolkit indicator provides a modular technical analysis framework allowing users to combine up to four distinct moving average types with advanced trend identification logic. This tool integrates 27 different mathematical smoothing algorithms, ranging from standard averages to scientific and adaptive models, to provide comprehensive trend detection and visual analysis on a single chart.

Usage

The Usage section describes how the script can be used to identify market regimes and trade setups. Users can select between 2, 3, or 4 active lines to build a custom trend hierarchy.

• Trend Identification: The script offers three logic modes:
  • Strict Hierarchy: Defines a trend based on the sequential stack of all active MAs (e.g., MA1 > MA2 > MA3 > MA4 for a bullish state).
  • Custom Pairs: Allows users to define specific relationships between any two MAs (e.g., MA1 vs MA2 and MA3 vs MA4) that must all align to trigger a trend change.
  • Weighted Score: Assigns points to different MA crossovers; if the total score exceeds a user-defined threshold, a trend signal is generated.
• Visual Analysis: The toolkit provides visual fills between lines to represent the gap between fast and slow averages. The background dynamically changes color based on the selected trend logic, while cross signals (e.g., "1▲2") mark specific intersection points.
• Smart Cross Filter: Enabling this feature filters out low-quality signals by evaluating the momentum and consistency of a cross before plotting a signal.

Details

The script implements a wide variety of smoothing techniques categorized into three main groups:

1. Standard Basics: Includes SMA, EMA, WMA, VWMA, HMA, RMA, SWMA, and ALMA.
2. Scientific/Experimental: These use physics and biological analogies. For example, Fluid Dynamics adapts smoothing based on price "viscosity" (volatility), while Behavioral Economics uses Prospect Theory to weight downward moves differently than upward moves.
3. Adaptive Algorithms: Features like KAMA, Jurik, FRAMA, and Hurst Adaptive change their responsiveness based on market efficiency or fractal dimension, aiming to reduce lag during trends while remaining smooth during consolidation.

The scientific implementations often utilize Taylor series expansions to calculate complex functions like hyperbolic tangents within the Pine Script environment, ensuring mathematical accuracy for the experimental models.

Settings

General & MA Configuration

• Moving Averages to Display: Determines how many MA lines (2, 3, or 4) are active and visible.
• Enable MA (1-4): Toggles the individual moving average calculation and plot.
• Type: Selects the specific smoothing algorithm (e.g., EMA, Jurik, SuperSmoother).
• Length: Sets the lookback period for the selected average.
• Source: Defines the price data used for calculation (Close, HL2, etc.).

Trend Logic

• Trend Identification Mode: Chooses between Strict Hierarchy, Custom Pairs, or Weighted Score logic.
• Pair Condition: Sets whether the "Fast" MA must be above or below the "Slow" MA to satisfy the logic.
• Weighted Score Threshold: The minimum points required from active pairs to trigger a Bullish/Bearish background state.

Smart Cross v2

• Minimum Quality Score: A filter (0.0 to 1.0) that determines how "clean" a cross must be to display a signal.
• Allow No History: Allows signals to trigger on the first cross of the chart even without prior data points.

Visuals

• Show MA Fills: Toggles the shaded area between moving average lines.
• Show Background Trend: Toggles the green/red/grey background highlights.
• Show Signals: Displays or hides arrow markers and labels for crossovers.

FAQ

How do I interpret the "1▲2" and "1▼2" labels? These indicate that MA1 has crossed above (▲) or below (▼) MA2. The numbers correspond to the specific MA slots defined in the settings.

What does the grey background mean? A grey background indicates a neutral or "mixed" state where your selected trend logic requirements (Strict, Custom, or Weighted) are not fully met.

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