Auto Intelligence Selective Moving Average(AI/MA)

The Auto Intelligence Selective Moving Average (AI/MA) indicator provides a state-adaptive crossover framework that dynamically switches between multiple moving average types and periods based on real-time market regimes to optimize trend capture.

Usage

The Usage section describes how the script can be used to identify entry and exit points based on shifting market conditions. The indicator is primarily used as a crossover strategy where the "Short MA" and "Long MA" change their underlying calculation method (SMA, EMA, RMA, or HMA) depending on the current market state.

• Long Entry: Occurs when the adaptive Short MA crosses above the adaptive Long MA.
• Exit/Short Signal: Occurs when the adaptive Short MA crosses below the adaptive Long MA.

The script automatically classifies the market into four distinct regimes to determine which MA pair to display:

1. Bull Regime: Price is above the base MA and the slope is positive.
2. Pullback Regime: Price is below the base MA but the slope remains positive.
3. Rebound Regime: Price is above the base MA while the slope is negative.
4. Bear Regime: Price is below the base MA and the slope is negative.

Details

The AI/MA script utilizes a state-aware logic system developed through external optimization. The core concept involves a central 20-period Exponential Moving Average (EMA) used as a baseline to determine market "states" based on price location and slope.

For each of the four identified states, a specific pair of moving averages (Short and Long) was selected based on performance metrics such as Cumulative PnL, Sharpe Ratio, and Max Drawdown. The available moving average types include Simple Moving Average (SMA), Exponential Moving Average (EMA), Rolling Moving Average (RMA), and Hull Moving Average (HMA). By switching the MA calculation method dynamically, the script attempts to reduce lag during trending phases and minimize whipsaws during transitional regimes.

Settings

• Default Quantity Type: Sets the basis for trade sizing (e.g., percentage of equity).
• Default Quantity Value: The numerical value for the position size.
• Short MA Color: Customizes the visual appearance of the leading moving average.
• Long MA Color: Customizes the visual appearance of the lagging moving average.

FAQ

How do I interpret the different moving averages appearing on the chart? The indicator automatically swaps the type of moving average (such as EMA or HMA) based on whether the market is trending or ranging. You only need to follow the green (Short) and red (Long) lines for crossover signals.

Can this indicator be used for automated trading? Yes, the script includes built-in strategy entry and close functions, along with alert conditions for "Long Alert" and "Short Alert" that can be connected to external execution platforms.

How can I access the Auto Intelligence Selective Moving Average (AI/MA)? You can get access on the LuxAlgo Library for charting platforms like TradingView, MetaTrader (MT4/MT5), and NinjaTrader for free.