Simple Moving Averages

The Simple Moving Averages indicator allows users to plot up to 10 customizable simple moving averages simultaneously to identify trend direction and potential support or resistance levels across multiple timeframes.

Usage

The Usage section describes how the script can be used. Traders typically use multiple moving averages to identify the "stacking" of trends. When shorter-term SMAs are above longer-term SMAs, it indicates a bullish trend; conversely, when shorter-term SMAs are below longer-term SMAs, it indicates a bearish trend.

The indicator provides visual feedback by changing the color of the SMA lines based on the relationship between the current price and the average:

• Bullish Color: When the closing price is above the specific SMA, the line turns green.
• Bearish Color: When the closing price is below the specific SMA, the line turns red.

Commonly used settings include the 50-period SMA for intermediate trends and the 200-period SMA for long-term trend identification. By plotting up to 10 lines, users can create a "ribbon" effect to visualize momentum shifts.

Details

The Simple Moving Average (SMA) is calculated by adding the closing prices of a security over a specific number of periods and then dividing that sum by the number of periods. This script utilizes the ta.sma() function to calculate ten distinct averages.

This implementation features optimized logic for alerts and visual hierarchy. Specific SMAs (such as #2, #5, #7, and #10) are assigned thicker line widths by default to help users distinguish between key psychological levels (like the 50, 200, and 600 SMAs) and secondary filters. The script includes built-in alert conditions for price crossovers and crossunders of the first and fifth SMA slots.

Settings

• SMA #1 - #10: Sets the lookback period for the respective moving average. Increasing this value creates a smoother line that reacts more slowly to price changes.
• SMA Source #1 - #10: Determines the price data used for the calculation (e.g., Close, Open, High, Low, HL2, etc.).

FAQ

How do I interpret the color changes on the lines? The lines turn green when the current market price is trading above the moving average, suggesting bullish momentum for that specific timeframe. The lines turn red when the price is trading below the moving average, suggesting bearish momentum.

Can I trigger alerts for price crossing the SMAs? Yes, the script is pre-configured with alert conditions for SMA #1 and SMA #5. You can create an alert in your charting platform by selecting this indicator and choosing the crossover/crossunder conditions.

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