Daily & 4H Moving Averages

The Daily & 4H Moving Averages indicator plots higher-timeframe simple moving averages (SMAs) onto lower-timeframe charts to help traders identify significant institutional support and resistance levels.

Usage

The Usage section describes how the script can be used to monitor trend direction and potential price reversals without switching chart timeframes.

Trend Identification

By projecting the Daily (dotted) and 4-Hour (solid) moving averages onto smaller timeframes like the 15-minute or 1-hour, traders can maintain a "big picture" perspective. When price remains above both levels, the macro trend is considered bullish, whereas trading below them suggests a bearish environment.

Rejection and Bounce Signals

The indicator includes a "Bounce" feature that identifies specific price action patterns where the market tests a moving average and successfully rejects it. When the "MA Bounce Labels" are enabled, an "M" label appears after a confirmed rejection, signaling a potential continuation of the prevailing trend.

Details

This script, originally authored by @scarf, calculates higher-timeframe moving averages by mathematically adjusting the length based on the current chart's resolution. It utilizes the timeframe.in_seconds function to determine the ratio between the current interval and the target 1-Day or 4-Hour periods.

The logic ensures that the moving averages remain visible on any timeframe lower than the Daily interval. The calculation for the Daily MA uses a 1440-minute reference, while the 4-Hour MA uses 240 minutes. The script also includes built-in alert conditions for price crossovers and confirmed "bounce" signals to facilitate automated monitoring.

Settings

• Daily & 4H Moving Average: Determines the period used for both the Daily and 4H SMA calculations. The default is set to 99.
• Source: Selects the price data used for the calculation (e.g., Close, Open, High, Low).
• MA Bounce Labels: Toggles the visibility of bullish and bearish "M" labels on the chart when a bounce is confirmed.
• Line Width: Adjusts the thickness of the solid 4-Hour moving average line.

FAQ

What timeframes are supported by this indicator?

The indicator is designed to work on all timeframes lower than the Daily (1D) interval. If used on a Daily or higher chart, the lines will not plot as the calculation requires a lower-resolution base.

Can I change the length from 99 to another value?

Yes, the "Daily & 4H Moving Average" setting allows you to input any integer. While 99 is the default due to its popularity on major exchanges, common alternatives include 20, 50, or 200.

How do I access the Daily & 4H Moving Averages?

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