Super Moving Average

The Super Moving Average indicator provides a versatile trend-following framework by combining multiple moving average types with integrated volatility bands and trend-reversal tracking.

Usage

The Super Moving Average serves as a comprehensive tool for identifying trend direction, potential reversal points, and periods of low momentum.

Trend Identification and Reversals

The primary moving average line changes color based on the current trend state (Green for bullish, Red for bearish). A "MA Trend Trigger" stop line follows the price action, calculated based on ATR and previous price extremes. When the moving average crosses this stop line, a trend reversal is signaled, indicated by up or down arrows on the chart.

Volatility Channels

The script plots two sets of bands:

• Bollinger Bands: Calculated using standard deviations from the moving average to identify price extremes.
• Keltner Channels: Calculated using ATR to provide a volatility-adjusted buffer. The area between these bands is highlighted to visualize the relationship between standard deviation and average true range.

Velocity Squeezes

The tool monitors the rate of change (velocity) of the moving average. When the moving average's movement falls below a specific threshold (the Squeeze Multiplier), "Velocity Squeeze" markers (crosses) appear on the MA line. These signify periods where the trend is losing momentum or consolidating, often preceding a significant breakout or turning point.

Details

The script supports several calculation methods for the baseline: Simple (SMA), Exponential (EMA), Hull (HMA), Weighted (WMA), Linear Regression (LinReg), Volume Weighted (VWMA), and Exponential Volume Weighted (EVWMA).

The trend reversal logic utilizes a trailing stop mechanism. For a bullish trend, the stop is calculated by subtracting a multiplier of the ATR from the price and maintaining the highest level reached until a crossover occurs. The "Tick/Pip Rounding" feature allows users to align these stop levels with specific asset pricing increments (e.g., Forex pips or Index points), ensuring the levels are actionable for trade execution.

Settings

Main Settings

• Type: Selects the mathematical model for the moving average calculation.
• Source: The price data point used for calculations (default is Close).
• Length: The lookback period for the moving average and volatility calculations.

Keltner and MA Stop Trigger

• ATR Length: The lookback period used to calculate the Average True Range.
• ATR Multiplier: Determines the distance of the Keltner bands and the trend stop from the moving average.

Bollinger Bands and MA Velocity Squeeze

• BB Stand Deviation: The number of standard deviations for the Bollinger Band width.
• Squeeze Trigger: Adjusts the sensitivity of the velocity squeeze detection; lower values require the MA to be more "flat" to trigger a squeeze.

MA Stop Rounding

• Tick/Pip Rounding: Rounds the stop levels to the nearest specified tick or pip increment. Setting this to 0 disables rounding.

FAQ

How do I interpret the Velocity Squeeze crosses?

The crosses appear when the moving average's slope becomes relatively flat compared to its recent volatility. This suggests the current trend is stalling and a period of consolidation or a reversal may be approaching.

What is the difference between the Keltner and Bollinger bands in this tool?

Bollinger Bands respond to price volatility through standard deviation, while Keltner Channels respond to volatility via ATR. Comparing the two helps traders see if the price is extending beyond normal volatility ranges.

How do I access the Super Moving Average?

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