Triple Smoothed Signals

The Triple Smoothed Signals indicator provides a robust trend-following system that filters market noise using multi-stage smoothing to highlight significant price movements and momentum shifts.

Usage

The Triple Smoothed Signals tool is used to identify potential trend reversals and momentum direction through the interaction of its two primary components: a triple-smoothed moving average and a signal line.

• Bullish Reversals: A bullish signal is generated when the signal line crosses under the triple smoothed moving average. This suggests that downward momentum is fading and an upward trend may be forming.
• Bearish Reversals: A bearish signal occurs when the signal line crosses over the triple smoothed moving average, indicating a potential shift toward a downward trend.
• Trend Strength: Dynamic color fills between the lines use a normalized distance calculation to visualize the strength and maturity of the current trend.

Traders can utilize the visual labels on the chart to identify entry points and set alerts for real-time notification of these crossovers.

Details

The indicator operates by applying a moving average calculation three consecutive times to the selected data source (e.g., Close). This "triple smoothing" process (v1) significantly reduces high-frequency noise that often plagues standard moving averages. A secondary signal line (v2) is then derived by smoothing the v1 result further.

To provide visual context, the script calculates a normalized distance (nDist) between these two lines over a 70-period lookback. This distance is mapped to a color gradient, allowing the fill between the lines to transition between bullish and bearish colors based on the relative position and spread of the averages.

Settings

Moving Average Settings

• Main Smoothing Length: Determines the period for the initial triple smoothing process.
• Signal Length: Sets the period for the signal line calculation.
• Data Source: Selects the price data used for all calculations (default is Close).
• Triple Smoothed Moving Average Type: Choose between EMA, SMA, RMA, or WMA for the primary smoothing.
• Signal Type: Choose the moving average type used specifically for the signal line.

Appearance

• Bullish Color: Customizes the color for upward trend signals and gradients.
• Bearish Color: Customizes the color for downward trend signals and gradients.

FAQ

How do I interpret the color gradients?

The color gradients represent the normalized distance between the triple smoothed line and the signal line; a more solid color typically indicates a widening gap and stronger momentum, while fading colors may suggest a narrowing gap and potential trend exhaustion.

What are the best timeframes for this indicator?

While the indicator is versatile, the triple smoothing process is particularly effective on timeframes where market noise is prevalent, such as the 15-minute or 1-hour charts, helping to reveal the underlying trend.

How can I access Triple Smoothed Signals?

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